Crown (CWN) has leapt to a record high as the company's better-than-expected full-year results gain even more favour with investors.
Shares in the gaming and entertainment business have jumped 9.1% to $14.85 since Friday – their biggest two-day rise in over four years – as brokers and newsletters lift their already high expectations for the stock (see Cliona O'Dowd's Collected Wisdom).
Credit Suisse slapped a price target on the stock of $16.40 – up $3.60 on its previous price – and upgraded its recommendation to "outperform" from "neutral", finding an extra 12-24% in earnings per share (EPS) growth as a result of the strong momentum from the Melco joint venture.
The broker was also pleasantly surprised by strong growth emanating from Crown's Perth operations, with second-half revenue up 8.4%, and tight cost control from its softer Melbourne operations, contributing to full-year earnings that were $15 million more than analysts had expected at $473 million.
"Operating cost management was excellent at the Melbourne property, with expense growth muted on both a full-year basis and in the second half," Credit Suisse said.