Genting SP

Genting SP: Morgan Stanley upgraded the stock from equal-weight to Overweight and raised TP from $1.25 to $1.30 noting attractive valuation (9x EV/FY15E EBIDA) and four upcoming catalysts: 1. Japan – could legalize casinos in 4Q14, GENS is a front-runner and could outperform in near term 2. S.Korea - Ground breaking at Jeju likely in 1H15, Jeju gaming market would benefit from visa-free entry and potential residency for Chinese visitors 3. Singapore – opening of Jurong Hotel in mid-2015 is on track and mass market volume is expected to drive profitability 4. Macau – gaming market declining, GENS’ Singapore market relatively outshines peers with large exposure in Macau