Report
Ravi Reddy
EUR 147.86 For Business Accounts Only

Crown Takes a Lower-Risk Path to Improve Shareholder Value; FVE Lowered on Weak Trading Update

We reduce our fair value estimate for narrow-moat Crown Resorts by 7% to AUD 13 per share, following a weak trading update for the first 23 weeks of fiscal 2017. This was overshadowed by changes to previously flagged strategic initiatives.
The board will not proceed with the proposed demerger of the company's international investments. Instead, Crown has agreed to sell almost half of its 27.4% Melco Crown stake to Melco International Development (the major shareholder of Melco Crown). It is also...
Underlying
Crown Resorts Limited

Crown Resorts is an entertainment and gaming group. Co. owns and operates two resorts, Crown Melbourne, which features the Crown Towers Melbourne hotel, Crown Metropol Melbourne hotel, and the Crown Promenade Melbourne hotel; and Crown Perth, which features the Crown Metropol Perth hotel and the Crown Promenade Perth hotel. In the U.K., Co. owns and operates Crown Aspinall in London, a casino in the West End entertainment district. Co. also holds equity interest in Melco Crown Entertainment, a developer, owner and operator of resorts in Macau and the Philippines. The resorts include: City of Dreams Macau, Macau Studio City, and City of Dreams Manila.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Ravi Reddy

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