Loading...
Back to narrative

SKC: Lower Risk Profile Will Support Stronger Earnings Multiple Ahead

Digital Integration And Asian Tourism Will Drive Leisure Expansion

SKC logo
SKC
AnalystHighTarget
Not Invested
Published 07 Sep 2025

Update shared on 13 Dec 2025

Fair value Decreased 46%
n/a
n/a
AnalystHighTarget's Fair Value
n/a
Loading
1Y
-42.4%
7D
-0.6%

Analysts have raised their price target on SkyCity Entertainment Group from $2.80 to $3.10, citing a lower perceived risk profile, modestly softer growth expectations, and a healthier profit margin outlook that together support a more reasonable future earnings multiple.

What's in the News

  • Chief Financial Officer Peter Fredricson has tendered his resignation, with his departure planned by 1 March 2026 to allow for an orderly transition (Key Developments)
  • SkyCity Entertainment Group will conduct a comprehensive external search to appoint a new Chief Financial Officer, indicating potential changes in its financial leadership and strategy (Key Developments)

Valuation Changes

  • The fair value estimate has fallen significantly, from NZ$2.80 to NZ$1.50 per share, indicating a more conservative view of intrinsic value.
  • The discount rate has decreased modestly, from 11.10 percent to 10.33 percent, reflecting a slightly lower perceived risk profile.
  • The revenue growth expectation has edged down slightly, from 6.58 percent to 6.25 percent annually, signalling more tempered top-line assumptions.
  • The net profit margin forecast has risen moderately, from 10.01 percent to 11.11 percent, pointing to improved profitability expectations.
  • The future P/E multiple has fallen sharply, from 39.9x to 13.9x, suggesting a materially lower valuation being applied to forecast earnings.

Have other thoughts on SkyCity Entertainment Group?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

Disclaimer

AnalystHighTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystHighTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystHighTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.