Company Name: GENTING SINGAPORE PLC
| Research House: Deutsche Bank | Price Call: HOLD | Target Price: 1.27 |
Deutsche lowered its growth estimate for Singapore’s gaming market in 2013 to 3%, from 6% previously, underpinned by a 3% increase in the VIP segment and 4% mass revenue growth.
Deutsche said it expects Singapore’s total gaming market size to be $7.4 billion in 2013.
The Singapore VIP market is highly dependent on foreign players, Deutsche said, adding that it believes the city-state is nearing the bottom of the negative VIP growth trend.
But Deutsche expects more meaningful VIP growth in the second half of 2013, citing a soft regional economic outlook, as well as the estimated gradual economic recovery and policy and economic reforms following a leadership transition in China.
Deutsche has a ‘hold’ rating and $1.27 target price on Genting Singapore PLC. The casino operator’s stock was down 2%, while the broader Straits Times Index was flat on Monday.
Genting Singapore shares have fallen 17% so far this year, versus the 16% gain in the index.
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