CIMB raises price target for Genting

Stock Name: Genting SP
Company Name: GENTING SINGAPORE PLC

Research House: CIMB

Price Call: BUY

Target Price: 2.00

CIMB Research increased its price target for Singapore-listed Genting Singapore to $2.00 from $1.85 and kept its outperform rating on the casino operator.

Genting’s shares were down 0.9% at $1.72.

CIMB said the launch of Resort’s World Sentosa’s Equarius Hotel and beach villas were timely to capture the potential stream of VIP players from the two new junket operators.

Last week, the Casino Regulatory Authority approved the licenses of two junket operators.

The partial opening of 100 rooms at the Equarius Hotel and 17 of the beach villas have seen rooms “running at close to full occupancy” while marketing activities are expected to begin in the second half of the year, CIMB said.

CIMB said junket operations can help alleviate concerns of RWS’s bad debt provisions and declining VIP volumes.