Praveen Choudhary, an analyst from Morgan Stanley, maintained the Hold rating on Galaxy Entertainment Group (GXYEF – Research Report). The associated price target is HK$34.00.
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Praveen Choudhary’s rating is based on a combination of factors that present a mixed outlook for Galaxy Entertainment Group. The company’s net cash position improved to HK$29 billion as of March 2025, which is a positive indicator of financial stability. However, the stock is trading at a slightly higher EV/EBITDA multiple compared to the industry average, which suggests limited upside potential.
Despite some positive developments, such as a higher VIP win rate and the soft launch of Capella at Galaxy Macau, the company’s 1Q25 hold-adjusted EBITDA fell short of expectations, being 4% below Morgan Stanley’s estimates. Additionally, the mass GGR excluding City Clubs experienced a decline, and the retail rental income showed a decrease, although it performed better than some competitors. These mixed results contribute to the Hold rating, indicating a cautious stance on the stock’s near-term performance.