Genting SP

Genting SP: Analysts are citing that growth in the Singapore market has hit its ceiling, with the liquidity crunch in the region, declining tourism and new casinos in Asia are eating into the Spore gaming pie. Macquarie reckons the Singapore gaming market cannot grow and Genting will be pushed into extending more credit to VIP players to protect market share, leading to more bad debts and deterioration of returns. Also, overseas expansion, specifically in South Korea's Jeju Island, has run into delays after legislations get pushed forward. In addition, consensus may be too bullish and valuations are too expensive. Macquarie thinks that the downgrade cycle will continue. House downgraded to Underperform with TP of $1.00.