Thursday, June 9, 2011

Maybank IB Research initiates coverage on Genting Singapore

KUALA LUMPUR: Maybank Investment Bank Research has initiated coverage on Genting Singapore with a Buy call and S$2.37 discounted cashflow based target price.

'Our target price is reinforced by our EV/EBITDA valuation of S$2.36 which assumes 16x (Macau average 1-year forward EV/EBITDA multiple) to Resorts World Singapore,' it said on Thursday, June 9.

Maybank IB Research said its target price implied a three-year forward PEG ratio of 1.1 times which is not exuberant.

'Furthermore, we estimate that the introduction of junkets will add at least 16% to Genting Singapore's earnings,' it said.

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