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 3.5 percent.
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 market segments.
"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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Reporting by Charmian Kok in Singapore; email@example.com