RHB raises Genting Singapore target price amid reopening of borders
Genting Singapore’s target price now ranges from S$.090 to S$0.95.
Singapore.- Research firm RHB has raised its target price on Genting Singapore, citing improved post-pandemic recovery prospects and potential dividend yield. Its target price now ranges from S$0.90 to S$0.95, which is about 18 per cent higher than where it was trading on Friday.
RHB said: “We still like this company for its recovery from borders reopening and potential upside in dividends.”
It added: “The higher multiple reflects Genting’s better and more certain prospects, as Singapore begins to treat Covid-19 as an endemic, reducing the probability of more future strict lockdowns.”
Vitaly Umansky, an analyst at Bernstein, has recently predicted that Genting Singapore will report revenue and profit growth for the remainder of 2022 and into 2023 after Singapore reopened its borders to tourism for fully vaccinated visitors on April 1.
Growth will, however, be limited as travel restrictions are expected to continue in China, which makes up about 30 per cent of the company’s business. In 2021, the group’s revenue improved marginally to S$1.067bn from S$1.064bn in 2002. Net profit was up 165 per cent at S$183.3m (US$136.3m).
