Analyst Wee Kuang Tay of CGS-CIMB reiterated a Buy rating on Genting Singapore (GIGNF – Research Report), retaining the price target of S$1.05.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Wee Kuang Tay’s rating is based on several strategic developments and financial projections for Genting Singapore. The company is poised for growth with new attractions at Resort World Sentosa set to open in the second half of 2025, which is expected to drive a recovery in profitability following a period of higher operational expenses and disruptions. The anticipated increase in tourist arrivals and normalization of VIP win rates also contribute to a positive outlook for revenue growth.
Despite the short-term challenges, Genting Singapore’s financial health remains robust, supported by a strong net cash position that enables the company to maintain its dividend payout. The analyst has adjusted the EPS projections upwards for FY25F and FY26F, reflecting reduced depreciation and amortization expenses, which further supports the Buy rating. Potential re-rating catalysts include stronger-than-expected earnings and tourist inflows, while downside risks involve construction delays and potential bad debts.
In another report released on February 21, DBS also maintained a Buy rating on the stock with a S$0.95 price target.
GIGNF’s price has also changed moderately for the past six months – from $0.627 to $0.563, which is a -10.21% drop .