GENM (4715) : No change to Genting M’sia rating: AllianceDBS Research
KUALA LUMPUR: AllianceDBS Research says it is keeping its Hold call on Genting Malaysia despite the company losing its bid to open New York upstate casinos, saying the New York bids had not been factored into its forecasts.
The target price is kept unchanged at RM4.35.
While the Genting Group had been perceived as a frontrunner for two of its bids, it did not in the end win any, as Empire Resorts, Capital Region Gaming and Wilmorite emerged triumphant.
The research house said that while there would be no change to earnings, target price or recommendation, it does expect the disappointing news to have a temporary dampening effect.
“Expect near-term price weakness. Although there is fundamentally no impact on group earnings, this news could dampen investor sentiment towards the group in the near-term.
“We maintain our Hold call on Genting Malaysia with a target price of RM4.35 based on SOP valuation. We do not see significant re-rating catalysts for the stock in the near term,” AlllianceDBS said.
http://www.thestar.com.my
KUALA LUMPUR: AllianceDBS Research says it is keeping its Hold call on Genting Malaysia despite the company losing its bid to open New York upstate casinos, saying the New York bids had not been factored into its forecasts.
The target price is kept unchanged at RM4.35.
While the Genting Group had been perceived as a frontrunner for two of its bids, it did not in the end win any, as Empire Resorts, Capital Region Gaming and Wilmorite emerged triumphant.
The research house said that while there would be no change to earnings, target price or recommendation, it does expect the disappointing news to have a temporary dampening effect.
“Expect near-term price weakness. Although there is fundamentally no impact on group earnings, this news could dampen investor sentiment towards the group in the near-term.
“We maintain our Hold call on Genting Malaysia with a target price of RM4.35 based on SOP valuation. We do not see significant re-rating catalysts for the stock in the near term,” AlllianceDBS said.
http://www.thestar.com.my
