Genting SP

Genting SP: CLSA highlights that there are little reasons to turn bullish on the Singapore gaming market and GENS as the house forecast Ebitda to decline -2% YoY in 3Q. While Regional expansions are long-term drivers, both Genting’s Jeju and Japan projects are facing headwinds. With dampened long-term growth outlook, the house is lowering target EV/Ebitda multiple to 8.0x and target price to S$1.15 implying 5% upside. Despite the 17% share price decline since Jun-14, valuation remains unattractive at 18x 15CL PE. Maintain U/p.