Crown Resorts (CWN) shares jump on license decision
CWN +8.70%: The embattled casino & property company was thrown a life line today retaining their Victorian casino license under a regime of strict conditions. While it’s clearly a positive, the conditions will be tough and the impact on earnings is hard to quantify at this stage. We estimate that Crown’s property portfolio has a value of ~$8.00-$8.50 and the Casino is now worth ~$6.00 in our view making it around ~40% cheap. Star Entertainment (SGR) also rallied ~5% on the news. Given the remediation required across Crown & Star following recent revelations, a tie up to reduce the increased cost of compliance would make total sense.
MM is bullish CWN
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