Genting Singapore kept at ‘hold’ by DBS with 79 cents target price

SINGAPORE (May 16): DBS Research is maintaining its “hold” recommendation on Genting Singapore (GENS) with a higher target price of 79 cents from 65 cents.

Although GENS’s earnings is in the process of bottoming out, adjusted EBITDA is still likely to fall y-o-y for at least another quarter on the back of weak VIP business and elevated bad debts before potentially picking up in 2H16.

VIP business is also expected to remain a drag on GENS’s near-term earnings, and an overall 21% decline in VIP volumes has been projected to occur this year.

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