AllianceDBS revises target price for Genting
Published on: Thursday, August 04, 2016
Kuala Lumpur: AllianceDBS Research has revised upward its target price for Genting Malaysia Bhd (GENM) to RM5.00, from RM4.40 previously, supported by the group's better earnings outlook.The research house has also upgraded its recommendation to a "buy" from "hold" on the company and foresees three catalysts that would place GENM in a better position.The three factors are, additional gaming capacities arising from its launch of the Genting Integrated Tourism Plan (GITP), the weak ringgit to attract more tourists and, rising optimism on the group's earnings outlook.
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Its GITP launch could re-rate the stock closer to its intrinsic value.The group is also on track to launch its Sky Avenue and Sky Plaza shopping malls, and the new cable car station by end-2016, and Twentieth Century Fox World outdoor theme park by end-2017."We expect the number of visitors to improve from 19 million in 2015 to 25 million by 2018, on track to meet its target of 30 million by 2020. Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
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However, the research house noted that a further weakening of consumer sentiment could hurt domestic gaming operations and negative surprises from its overseas operations. – Bernama
