Genting SP

Genting SP: Management remains optimistic about the potential progress in casino legislation in Japan. Japanese lawmakers have until 6 Dec to submit the bill, otherwise, the next session will kick off in Jan 2014. Most investors remain sceptical on Japan casino gaming as the issue has been talked about for over ten years now. Hence, CS believe any progress on gaming legislation in Japan could potentially be a major share price catalyst for counter. CS maintain its OUTPERFORM rating on Genting SP with $1.75 TP, being a high beta and liquid leisure play. Historical EV/EBITDA valuations suggest 17% potential upside for the stock. At $1.51, counter is trading at its largest discount ever to the Macau sector average.