Genting SP: Nomura downgraded Genting SP to Neutral after the disappointing 1Q15 results, citing the lack of earnings visibility and catalysts.
Near-term headwinds like weakness in Chinese traffic, high impairments, and a strong SGD deterring tourist arrivals imply that FY15F EBITDA will be down over 2014.
House now value the Singapore business at a FY16F EV/EBITDA of 9x, closer to mature market peers in the US, UK and Australia, and at a 40%, discount to Macau names, translating to a TP of $1.00
In addition, Nomura thinks more downside might be limited, supported by share buybacks, as well as a zero-terminal growth DCF implied valuation.
No comments:
Post a Comment