Genting SP

Genting SP: Nomura upgrade to Neutral with $1.52 TP. House note that with SG’s market maturing, upside in GENS’s earnings is possible either through a sharp upswing in VIP volumes / win rate (difficult to forecast) or a deployment of its huge cash balance in overseas ventures, like Japan, where there are uncertainties on timing and competition. With Singapore tourist arrivals moderating to single digits (YTD arrivals up 8% y-y), and this being reflected in Sentosa traffic, house forecast a mid-high single digit growth in RWS’s top-line and argue that it and consensus earnings have limited downside risks now, and this should support the share price at current levels.