Genting SP: Credit Suisse reiterate OutPerform call with $2.65 TP, tipping ‘more good things to come’. Highlight that anecdotal evidence suggest that grp had a happy holiday season, with its high exposure th SG tourism’s industry, while key catalysts includes fresh hotel capacity and new attractions through 2011-12, and the potential licensing of junkets in 2011. Add that long-term outlook is attractive, and casino appears relatively cheap vs global peers…..
Similarly, Daiwa while positive on Genting, downgrades TP to $2.78 from $2.93. Note that positive fundamentals remain unchanged and further erosion of grps market share should be kept in check in 2011. Believe more gaming-revenue potential for SG will become visible operators step up their marketing efforts in the region. Note that valuation are no longer the most demanding, trading at an EV/EBITDA multiple of 14x vs 10-16x for the Macau gaming operators.
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