Genting Singapore, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Wee Kuang Tay from CGS-CIMB reiterated a Buy rating on the stock and has a S$0.79 price target.
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Wee Kuang Tay has given his Buy rating due to a combination of factors including Genting Singapore’s notable growth in non-gaming revenue and the strategic developments at Resorts World Sentosa (RWS). The company’s third-quarter results showed a significant increase in adjusted EBITDA, driven by the successful opening of new attractions and retail spaces, which have bolstered non-gaming revenues to their highest levels since 2018.
Additionally, the management’s focus on enhancing the customer experience through new attractions and seasonal events is expected to sustain foot traffic and further improve revenue streams. Although there is competitive pressure in the gaming segment from Marina Bay Sands, the anticipated increase in visitor numbers and the long-term potential from ongoing projects like RWS2.0 are seen as positive indicators for future profitability. The analyst also highlights potential risks such as a sluggish tourism outlook and lower-than-expected gaming win rates, but overall, the outlook remains optimistic.
In another report released on October 29, TR | OpenAI – 4o also upgraded the stock to a Buy with a S$1.00 price target.