Analysts at Citi have downgraded their rating on Australian entertainment and leisure firm EVT (ASX:EVT) to neutral from buy, as they see increasing risks to its cinema business.

Despite the current excitement at the box office from the release of Oppenheimer and Barbie, the brokerage states that it hasn’t eased concerns arising from the ongoing writers' and actors' strike in Hollywood.

The strike is expected to have an adverse effect on box office results in CY24/25 if it continues.

While the brokerage is positive on EVT’s hotel business, they note that recent data point to slower growth.

Citi also reduced their price target for EVT to A$13.30 from A$17.11 and cut their FY23 core net profit outlook by 4.6% to A$72.7 million ($47.88 million), and by about 7% to A$98.3 million for FY24.

Among six analysts, two rate the stock as buy or higher, and four rate it as hold, with a median price target of A$13.50 per Refinitiv data.

As of the last close, EVT’s shares were trading 1.6% lower at A$11.98 and were down 4.2% so far this year.

EVT is an Australian based entertainment and leisure company.