Friday, January 28, 2011

Genting SP - Credit Suisse reiterates Genting at Outperform; $2.65 target

Stock Name: Genting SP
Company Name: GENTING SINGAPORE PLC
Research House: Credit Suisse


Credit Suisse says it likes Genting Singapore (G13.SG) as a high beta and liquid proxy for the Singapore tourism sector. Cites “burgeoning tourist arrivals (projects 16% growth for 2011), positive GDP growth for Singapore and neighbouring Asian economies in 2011-12E and an active stock market.”



It adds, anecdotal evidence suggests Genting had a happy holiday season: “The integrated resort was packed in end-2010; hotels were operating at maximum capacity while theme park tickets were sold out for November-December. Aside from year-end festivities, strong CPO prices could have boosted spending by punters from nearby Johor.” 

The house reiterates its Outperform call, noting the stock’s 6% underperformance vs Singapore’s market year to date, while “its long-term outlook is attractive.” 



It adds, taking 2010-12E EBITDA CAGR into account, the stock “appears relatively cheap vs global peers.” Credit Suisse’s target of $2.65 implies 30% potential; shares are down 1.5% at $2.03.  

No comments:

Post a Comment