Analyst Note| Brian Han |
We lift our fair value estimate for Event Hospitality by 8% to AUD 13.00 per share, entirely driven by our cuts to our capital expenditure forecasts. While capital expenditure in first-half fiscal 2022 was up threefold year on year to AUD 30 million, management’s projected figure for the full year of about AUD 60 million is still low. We see this as more reflective of management’s reinvigorated capital discipline and core focus, borne out of coronavirus-enforced transformation, rather than any "underinvestment". As such, our capital expenditure expectations have been cut by about 19% per year over our forecast period.