Casino operator Genting Singapore reported
second-quarter earnings that missed expectations, prompting
several brokerages to cut their target prices and its shares to
fall to a two-week low.
By 0127 GMT, shares of Genting were down 2.7 percent at
S$1.245, and have fallen about 17 percent so far this year,
underperforming the Straits Times Index's 15 percent
rise. Earlier in the session, Genting fell to an intraday low of
Genting, which owns one of Singapore's two
multibillion-dollar casino complexes, posted lower quarterly
core earnings that missed expectations as gaming revenue fell
and expenses rose.
CIMB Research lowered its target price for Genting to S$1.60
from S$1.95, but maintained its 'outperform' rating, after
cutting its assumptions for gaming revenue in the VIP and mass
"We believe this is due more to the (casino's) more prudent
policy on credit following the negative swing in the second
quarter macro environment rather than a sharp contraction in the
business," said CIMB in a report.
The brokerage cut its 2012-2014 earnings per share estimates
by 20-24 percent.
OCBC Investment Research also lowered its target price for
Genting to S$1.66 from S$1.97, but noted that management expects
a weaker economic outlook to present acquisition opportunities.
It maintained its 'buy' rating on Genting.
Another brokerage Citigroup cut Genting's target price to
S$1.34 from S$1.40 and maintained a 'neutral' rating.
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0927 (0127 GMT)
(Reporting by Charmian Kok in Singapore;