Genting Singapore (GIGNF – Research Report), 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$1.05 price target.
Wee Kuang Tay has given his Buy rating due to a combination of factors influencing Genting Singapore’s potential for growth. Despite a decline in adjusted EBITDA in the first quarter of 2025, the company is expected to see a significant improvement in the second half of the year. This anticipated growth is attributed to the opening of new attractions, including a revamped all-suite hotel and a renovated Forum, which are expected to boost earnings and accommodate increased visitor numbers.
Furthermore, while the Singapore tourism sector has experienced a subdued start to the year, the introduction of these new attractions is likely to enhance Genting Singapore’s ability to capture a larger share of the market. The unchanged target price reflects confidence in the company’s strategic initiatives to drive non-gaming revenue growth, despite potential risks such as delayed openings or lower-than-expected win rates. Overall, these factors contribute to the positive outlook for Genting Singapore, justifying the Buy rating.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a S$0.95 price target.