SGR has delivered a solid start to FY18. Completion of the upgrade project at Sydney and Gold Coast resorts will be finished in early 2018, helping to drive earnings momentum through 2020.
We forecast FY18 EPS growth of +12%+, underlying EPS $0.29 and DPS $0.16 placing the stock on a forward yield of 3%.
You're not a member! Trial today
SGR is likely to provide a number of trading opportunities. We see the current rally exhausting within the $5.70 to $6.00 range. We recommend taking profit within this range and waiting for a pullback to $5.50.
Longer-term holders may prefer to sell covered call options at or near $6.00 and hold the stock through to June 2018.
Star Group
