(Nov 8): Genting Singapore Ltd’s shares fell to a two-year low, after analysts downgraded the stock following lacklustre third-quarter results from the firm.
The shares dropped as much as 7.7% to hit the lowest since October 2022, before paring some losses. The company reported a net income of S$79.4 million (US$60 million or RM263.4 million) for the three months ended September, missing estimates by a wide margin.
“The Third quarter was another miss, even after expectations were lowered following its second-quarter miss,” JPMorgan Chase & Co analysts including DS Kim wrote in a note.
The brokerage downgraded the stock to 'neutral' from 'overweight', as it expects the company to only start delivering meaningful earnings growth from the second quarter of next year. It cut its target price for the shares by 8% to S$0.92.
Genting Singapore has lost about 20% this year, making it among the worst performers on the Straits Times Index, which is up 15%.
Morgan Stanley also lowered its call on the stock to 'equal-weight' from 'overweight', citing competitive pressure from Marina Bay Sands and a less rosy outlook for the property and hotel markets.
Uploaded by Tham Yek Lee