EVT Ltd (ASX: EVT) is a communications stock that has had an up and down 2025.
It is an Australian provider of entertainment, hospitality, tourism, and leisure-related services. The company operates cinemas, hotels, bars, restaurants, theatres, and resorts in Australia, New Zealand, and Germany.
Familiar names that fall under the umbrella of the company include Event Cinemas, Greater Union Cinemas, Rydges Hotels, QT Hotels, and the Thredbo Alpine Village in New South Wales.
At the start of the year, shares in EVT were trading at $11.28 each. Fast-forward to August, and it had enjoyed a strong year and was sitting at $17.75 per share.
That's more than a 57% increase.
However, since hitting that 52-week high in late August, this communications stock has tumbled more than 20% and closed yesterday at $13.65 each.
Earnings season results
Key results released on August 25 included:
- Normalised Revenue: $1,236.9 million, up 1.3%
- Normalised EBITDA: $160.8 million, up 6.3%
- Normalised Profit After Tax: $38.4 million, up 12.7%
- Reported Net Profit After Tax: $33.4 million, up 593.4%
- Final Dividend: 22 cents per share
Speaking on the results, Jane Hastings, CEO of EVT, said:
We continued to make solid progress with our Group strategic initiatives. We achieved a record hotels group result, our entertainment group achieved record spend metrics and demonstrated evidence of the material operating leverage we have created.
It seems investors were not overly impressed with the results, as the share price has fallen 6% since the results last week for this ASX communications stock.
Is there opportunity following the sell-off?
After an outstanding run in the first 7 or 8 months of the year and an abrupt decline, brokers still see upside for this ASX communications stock.
Broker Bell Potter has an overweight recommendation and price target of $16.42.
From yesterday's closing price of $13.65, this indicates an upside of 20%.
Similarly, TradingView has a 12-month price target of $16.16.
Online brokerage platform Selfwealth also estimates the stock is close to 20% undervalued.
Based on these estimates, it seems that EVT shares were trading close to fair value before the recent sell-off.
