Tag: ASX:SGR

Shares of Star Entertainment have surged over 7% higher to reach a two-month high of $5.45 in early trade.

The company released full-year results this morning which showed underlying profits rose 20% to $258 million versus the street’s estimate of $248 million.

Much of increase was focused on foreign “high rollers” which lifted SGR’s turnover by 54% to $61 billion.

We see chart resistance at $5.50 over the medium-term.

SGR goes ex-dividend for 13 cents on August 28th.

Start Group Entertainment

Star report their earnings on the 24th August and we expect to see stronger numbers than the market is currently forecasting.

SGR goes ex-div on the 28th August $0.085

Our Algio engine generated a recent buy signal in SGR and we continue to have a positive outlook on the stock and rate this as a “high conviction” buy opportunity.

SGR is set to report FY18 results on Friday 24th August and we see potential upside to market expectations for VIP growth. The new VIP room in Sydney, (which opened in April), should further add to positive revenue growth.

With underlying earnings growth running at 8 – 10%, we expect FY19 EBITDA to increase from $570m to $620m, placing SGR on a forward yield of 5%.

Star Entertainment Group

Star Entertainment reports FY18 earnings on the 24th of August and consensus forecasts are expecting underlying NPAT of $255 million, up 15% on the same time last year.

The  1 to 3 year outlook for SGR supports ongoing EPS growth of 10% +, placing the stock on a forward FY19 dividend yield of 4.5%.

SGR is a current holding within our ASX 100 Model portfolio.

Star Entertainment Group

Shares of Star Entertainment have reclaimed the $5.00 handle for the first time in three weeks as investors get positioned for the FY 2018 earnings report due out on August 24th.

Over the last two weeks, SGR has had nine buy ratings and two hold ratings from local broker names.

The company operates casinos in Sydney, Brisbane, the Gold Coast and also manages the Gold Coast Convention Center on behalf of the Queensland Government.

SGR is one of the largest beneficiaries of tourism inflows into Australia, which means their hotels and developments could significantly raise future earnings.

The stock is currently trading at 8.7X FY19e EBITDA and we believe their FY 2018 earnings could surprise to the upside.

SGR was added to our ASX Top 100 portfolio and we see scope for a move back into the $5.70 range over the medium-term.

Star Entertainment Group

After trading as high as $5.45 on May 28th, shares of Star Entertainment Group slipped over 13% to reach a 1-year low of $4.73 last week. 

However, several broker notes have recently rated the stock as an “outperform” citing increased revenue during the month of May and targeted the share price to rise to $6.25 over the medium-term.

Our ALGO engine triggered a buy signal in SGR on April 12th at $5.05. We consider buying SGR  below $5.00 a good value for client portfolios.

Star Entertainment Group

Shares of SGR continue to show an upward bias after finding solid buying support near the $5.00 area last week.

A research piece from a local analyst noted that the strategic agreement with two HK-based joint venture partners, signed in March,  would boost the share price back into the $6.10 to $6.25 range over the medium-term.

Our ALGO engine triggered a buy signal in SGR on April 12th at $5.11.

The technical picture improved last week with several internal momentum indicators now pointing higher.

Star Entertainment Group

Our Algo Engine triggered a buy signal in SGR at $5.11 during yesterday’s ASX trading session.

The stock looks oversold and now sits within our forecast “value range”.

The August earnings result will likely provide the catalyst for the stock to re-rate higher.

SGR