Tuesday, February 19, 2013

Genting SP

Genting SP: will report 4Q12 results after market close on 21 Feb. Credit Suisse says, post-results the stock price performance will largely hinge on the quality of the results and the 2013 outlook message from mgt. CS observes significant downgrades to consensus earnings, with GENS FY13e EBITDA cut by 32%, suggesting that earnings momentum could be close to bottoming out. Consensus FY12E EBITDA of $1.35 b implies a 4Q12 EBITDA of $360m. Notes, competitor MBS had earlier reported its second strongest ever quarter in VIP volumes, suggesting the market may have been overly pessimistic on the prospects of Singapore’s VIP segment. While the house remains bullish on the prospects of an earnings recovery in 2013, it also notes the recent run-up (rebounded 30% in the past three months from its recent low) makes it tempting to take some money off the table. CS maintains its Outperform rating with TP $1.80, will review its numbers again post 4Q12 results.

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