Shares in Genting Singapore Plc fell to a 27-month
low after it posted weak third-quarter results, prompting
analysts to cut their target prices or downgrade ratings on the
By 0118 GMT, Genting Singapore shares were flat at S$1.235,
recovering from an intraday low of S$1.20. Since the start of
the year, they have fallen 18.5 percent, compared with a 12.9
percent gain in the Straits Times Index.
Genting Singapore, which owns one of Singapore's two
multi-billion-dollar casino complexes, said on Monday its
third-quarter core earnings fell 19 percent to S$303.2 million
from a year ago.
CIMB Research downgraded Genting Singapore to 'neutral' from
'outperform' and cut its target price to S$1.20 from S$1.60,
citing worse-than-expected quarterly earnings due to rising
costs and weak gaming revenue.
"We previously believed that the poor second-quarter results
were one-off but it does look like the business is going through
a difficult transition," said CIMB in a report.
The brokerage is cutting its earnings per share forecast for
Genting Singapore in 2012 by 15 percent, to reflect additional
pre-opening costs for the rest of Resorts World Sentosa's theme
RHB Research cut its target price on Genting Singapore to
S$1.15 from S$1.20 and maintained its 'underperform' rating,
citing a lower-than-expected EBITDA margin of 45.9 percent in
the third quarter and poor VIP win rate of 2.8 percent in the
same period, compared with 3.2 percent a year ago.
0923 (0123 GMT)