DBS ups Genting Singapore target price

Stock Name: Genting SP
Company Name: GENTING SINGAPORE PLC

Research House: DBS Vickers

Price Call: HOLD

Target Price: 1.45

DBS Vickers raised its target price for Genting Singapore PLC to $1.45 from $1.17 and kept its ‘hold’ rating after the casino operator said it was selling a 4.8% stake in Australia's Echo Entertainment Group.

By 11:43 a.m., Genting shares were down 0.7% at $1.4 and have dropped 7% so far this year, compared with the Straits Times Index’s 15.7% rise.

The development is positive as Genting’s stock was sold down on concerns about Genting getting entangled in an expensive takeover tussle against Crown, which owns 10% of Echo, DBS said.

However, DBS said it expects softness in Singapore’s gaming business to continue, given the cautious lending to VIPs and slower growth in tourist arrivals.