2259 GMT - Morgan Stanley says consensus forecasts appear to be underestimating a meaningful earnings recovery by EVT's cinema business. The bank's forecasts for EVT's cinema Ebitda are 3% above market hopes in FY 2025 and 20% higher in FY 2026. "We forecast positive growth in cinema earnings from both greater admissions and spend per head, as Box Office supply improves in 2025/2026," analyst Angela Sutcliffe says. MS also expects EVT's hotels business to keep outperforming the market, growing earnings by a mid-single-digit percent over the next three years. EVT's shares are up 33% to A$15.12 so far this year. Still, "we continue to see an attractive risk-reward with cinema earnings set to recover over FY 2025-2027 and approaching catalysts to narrow the discount to sum-of-the-parts," MS says, raising its price target on EVT by 27% to A$19.00/share. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

May 25, 2025 18:59 ET (22:59 GMT)

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