Investment bank Morgan Stanley says it expects the share price of Genting Singapore – operator of Singapore’s Resorts World Sentosa – to rise “relative to the country index” over the next 60 days, buoyed by strong 3Q23 earnings results and positive news on its Phase 2 expansion plans.
Estimating the chances of a solid increase in price at “80%-plus or highly likely”, analysts Praveen Choudhary and Gareth Leung noted that the stock has traded off recently, making short term valuation much more compelling. From a 2023 high of SG$1.18 in April, Genting Singapore shares opened at SG$0.88 on Monday.
The reasons for the potential increase are two-fold. For one, Genting Singapore is due to release its Q3 results this Friday 10 November and Morgan Stanley believe these will be strong with EBITDA of around SG$260 million (US$192 million) – up 22% quarter-on-quarter.
It also points to news that the Singapore government has approved the company’s plan to add 229,000 square feet of retail and 700 new hotel rooms as part of its Phase 2 expansion.
The bank’s positive outlook for Genting Singapore comes after local rival Marina Bay Sands recently announced a 34.3% year-on-year and 9.7% sequential increase in net revenues to US$1.02 billion, with Adjusted Property EBITDA of US$491 million up from US$432 million in the June quarter.
