Genting SP - Genting +0.5% at $2.04; Underestimated by market: OSK

Stock Name: Genting SP
Company Name: GENTING SINGAPORE PLC
Research House: OSK

Genting Singapore (G13.SG) +0.5% at $2.04, pausing for breather after setting record $2.06 high in early trade on continued optimism over gaming group’s Resorts World Sentosa.



“Momentum is waning and the stock has been rising on declining volume,” a dealer told Dow Jones; “it needs positive surprise to justify the rise as much of the positives appear priced in.”

Immediate support at five-day moving average, last at $1.98. OSK, which has Buy call with $2.65 target, says stock could still head higher, backed by stronger-than-expected margins, gaming volume growth.



“The market is underestimating RWS’ sustainable EBITDA run rates given the benign supply environment and low gaming tax rates over the foreseeable future, which allow the group to boost margins from future operating leverage gains,” says dealer.