Genting Singapore to experience rise in its share price

Morgan Stanley projects that throughout the next sixty days, the share price of Genting Singapore, the Singaporean operator of Resorts World Sentosa, will rise relative to the nation’s index. The company’s strong 3Q23 financial results and positive updates about its Phase 2 expansion plans serve as the foundation for this prediction.

Given that Genting Singapore’s stock price has recently dropped and short-term value has become more alluring, analysts Praveen Choudhary and Gareth Leung estimate that there is a “80%-plus or highly likely” chance that the company’s stock price will climb considerably. After peaking at SG$1.18 in April, Genting Singapore shares started the week at SG$0.88.

Two main variables are responsible for the anticipated surge. Firstly, Genting Singapore is expected to release its third-quarter results, which show a 22% quarter-over-quarter rise with an EBITDA of around SG$260 million (US$192 million).

Furthermore, the Phase 2 expansion plan of the corporation, which includes 700 further hotel rooms and 229,000 square feet of retail space, has been approved by the Singapore government.

This news comes after local competitor Marina Bay Sands revealed a 34.3% year-over-year rise in net sales to US$1.02 billion, along with a 9.7% sequential improvement in Adjusted Property EBITDA, which rose from US$432 million in the June quarter to US$491 million.

Original story by: IAG