Genting's earnings to take hit, but analysts bet on bright side

They cite aid and relief packages at next week's Budget; company's net cash position; and bid for Osaka IR licence

Published Thu, Feb 13, 2020 · 09:50 PM

Singapore

WHILE the Covid-19 outbreak will have a negative impact on Q1 earnings for Genting Singapore, with research houses lowering FY2020 forecasts by 10-20 per cent, analysts are recommending investors add positions in the casino operator as valuations are attractive.

In a Thursday report, DBS Group Research analyst Jason Sum wrote: "We opine that the 6.9 per cent drop in its share price since the onset of Covid-19 is a buying opportunity for value investors, with a potential re-rating catalyst around the corner." Based on Wednesday's closing price of 87.5 Singapore cents, he add…