Company Name: GENTING SINGAPORE PLC
| Research House: Credit Suisse | Price Call: BUY | Target Price: 1.80 |
Genting Singapore (G13.SG) is down 1.3% at $1.54, its fourth straight session of declines as it heads into Thursday’s earnings release.
Declines in Macau stocks may be weighing after analysts noted the enclave’s casinos saw weak VIP performance during the key Lunar New Year holiday gaming period.
Citigroup says Macau’s VIP gamers avoided the crowds amid the enclave’s solid visitor arrivals, possibly indicating a more favorable VIP-mass mix; Deutsche Bank notes Macau play sentiment may be hurt if Beijing reiterates its anti-corruption stance.
Credit Suisse notes GENS’ shares have rebounded 30% over the past three months; “While we remain bullish on the prospects of an earnings recovery in 2013, the recent run-up makes it tempting to take some money off the table.”
It notes the stock has been driven by competitor Marina Bay Sands reporting strong 4Q12 VIP volumes, suggesting the market may have been overly pessimistic on Singapore VIP prospects; “There is also talk of heightened retail interest in the stock,” CS adds.
But it expects 4Q12 EBITDA margins may remain weak as the marine park only opened in December and unless management was aggressive on extending VIP credit, it may not see a similar spike to MBS’. It rates GENS Outperform with $1.80 target.
No comments:
Post a Comment