Genting Singapore downgraded to "hold" by Maybank Kim Eng

Stock Name: Genting Sing
Company Name: GENTING SINGAPORE PLC

Research House: Maybank Kim Eng

Price Call: HOLD

Target Price: 1.08

SINGAPORE (April 23): Maybank Kim Eng has downgraded Genting Singapore to "hold" from "buy", citing limited upside to its $1.08 price target.

The company's Resorts World Sentosa (RWS) likely ceded market share again to Marina Bay Sands (MBS) in 1Q2015, based on Las Vegas Sands' just-released 1Q2015 results, according to Maybank Kim Eng analyst Yin Shao Yang.

While MBS's high-roller volume stagnated q-o-q, it was still better than the 28% decline seen at casinos in Macau, Yin noted.

Genting Singapore held at 'outperform' with lower target price of $1.55 by Credit Suisse

Stock Name: Genting Sing
Company Name: GENTING SINGAPORE PLC

Research House: Credit Suisse

Price Call: BUY

Target Price: 1.55

SINGAPORE (Nov 12): Credit Suisse is maintaining its "outperform" call on Genting Singapore with a lower target price of $1.55.

In its research note on Nov 12, analyst Foong Wei Loke sees progress in Japan's gaming bill and potential upside from new capacity in Genting Singapore's new Jurong hotel as potential share price catalysts.

Foong said there is unlikely to be sufficient time in the current DIET session to pass the gaming bill so Genting Singapore can only expect a favourable decision within 1H15.

Genting Singapore price target cut 17% to $1 by JPMorgan

Stock Name: Genting Sing
Company Name: GENTING SINGAPORE PLC

Research House: JP Morgan Chase

Price Call: SELL

Target Price: 1.00

SINGAPORE (Oct 30): JPMorgan has cut its price target for Genting Singapore from $1.21 to $1.00, based on a discounted cash-flow valuation model.

It has an "underweight" rating on the stock, citing limited growth potential for the gaming group.

"Genting Singapore's earnings quality is expected to weaken (given) an unfavorable business mix," three JPMorgan analysts said in a note.

Contributions from the VIP customer segment are volatile and offer low margins, they said.

Genting Singapore price target cut to $1.03 from $1.33 by OCBC

Stock Name: Genting Sing
Company Name: GENTING SINGAPORE PLC

Research House: OCBC

Price Call: HOLD

Target Price: 1.03

SINGAPORE (Oct 21): OCBC Investment Research has cut its price target on Genting Singapore to $1.03 from $1.33 to factor in lower free cash-flow growth.

"This is to account for a slower China economic growth outlook over the next few years," OCBC analyst Carey Wong said in a note today.

Genting's share price has fallen substantially ever since the gaming group said it had to book a "large" $81.6-million impairment on its trade receivables for 2Q2014, according to Wong, who has a "hold" rating on the stock.

Morgan Stanley upgrades Genting Singapore to "overweight"; $1.30 target

Stock Name: Genting Sing
Company Name: GENTING SINGAPORE PLC

Research House: Morgan Stanly

Price Call: BUY

Target Price: 1.30

Morgan Stanley has upgraded Genting Singapore to “overweight” from “equal-weight” and raised its price target for the gaming group to $1.30 from $1.25.

It cites an expected move by Japan to legalize casinos in 4Q2014, the likely ground-breaking of Genting Singapore’s Jeju project in South Korea in 1H2015, and the opening of Jurong Hotel in Singapore next year as catalysts for the stock.

The company’s growth profile and ability to generate cash flow also “look better than Macau’s” in the near term, Morgan Stanley analysts Praveen K Choudhary and Xin Jin Ling say in a note.

On Japan, they say a bill to legalize casinos could pass in the upcoming Diet session in 4Q2014, paving the way for gaming groups like Genting Singapore to set up shop in the country.

“Genting Singapore has focused on Osaka, which it believes has a better prospect of having the first casino to open, as Tokyo is focused on preparing for the Olympic Games in 2020.”

Meanwhile, Genting Singapore’s investment in a casino-resort in Jeju is expected to start contributing from 2017, they say.

“Genting Singapore and its partner are targeting a soft opening of the 2,800-room hotel and facilities by 2017. The stated return of 10% would be accretive and more than what the company earns on its cash currently.”

Jeju could cater to a population of 800 million Northeast Chinese within a two-hour flight time, and mainland Chinese do not require a visa to enter Jeju, they note.

The opening of Jurong Hotel next year should drive Genting Singapore’s mass-market volumes and profitability, they add.

Revenue per available room for the group’s existing hotels has risen at a 14% compounded annual growth rate in the last three years, they say.

Shares of Genting Singapore traded at $1.135, up 2.3%, at 3:20 pm Singapore time.

Macquarie cuts Genting Singapore to "underperform"

Stock Name: Genting Sing
Company Name: GENTING SINGAPORE PLC

Research House: MacQuarie

Price Call: SELL

Target Price: 1.00

Macquarie downgrades Genting Singapore to “underperform” from “outperform” and cuts its price target to $1.00 from $1.65.

“We believe investors are clinging on to Genting Singapore in hope. Hope of it somehow navigating through a mature Singapore gaming market and improve its returns. Hope of it investing all its cash into a lucrative overseas project and create value,” say Macquarie analysts Somesh Kumar Agarwal and Ken Ang in a note.

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