Genting SP

Genting SP: -0.9% at $1.735, consolidating below $1.77 after rising 27% from its Oct 4 low to a high at $1.80 Oct 28, as investors await the casino operator's 3Q results after market Thursday. Ahead of those keenly-awaited numbers, Nomura notes that Spore registered a 12% on-month decline in tourist arrivals in Sep, when the island state received 1.033m visitors, its lowest since Feb this year. It notes the weaker performance was dragged down by a 43% plunge in visitor arrivals from China when compared with Aug. "Investors could turn more cautious on GENS after the sharp reversal in Chinese visitor arrivals in Sep," the house says. It adds, "after the recent rebound in share price, GENS is now trading at 13.5X 2012F EV/EBITDA, a 29% premium to Macau's sector average of 10.5X. Unless it surprises the market significantly on the upside in its upcoming 3Q earnings results, we see a further 18% downside risk to its share price." It has a Reduce call with $1.41 target.