Morgan Stanley released a research report sayingnobonuscasino, gave Galaxy Entertainment (00027) a "In sync with the market" rating due to its fiscal year 2024nobonuscasinohas a slightly higher midfield market share, so it raised its EBITDA forecast by 2%. To reflect GEG's average interest rate for the second half of fiscal year 2023, the bank also raised the company's net interest income for fiscal year 2024 and raised its earnings per share forecast by 5% to 2.nobonuscasino.14 yuan, with target price raised from HK$38 to 39nobonuscasino.5 Hong Kong dollars.
The bank said it will increase the company's EBITDA forecast for fiscal years 2025 and 2026 by 0.5% and 1% respectively based on the higher cost assumptions for Galaxy Entertainment. At the same time, the earnings per share forecast for fiscal years 2025 and 2026 will be raised by 3% and 1% respectively to 2.68 yuan and 2.88 yuan. In addition, GEG's EBITDA forecast for the fiscal year 2024 to 2026 is 6%, 4% and 7% lower than the market consensus respectively.
In addition, Morgan Stanley said that after the opening of the third phase of GEG's project, the market was disappointed by the growth of the company's mass market share. However, at the same time, it was found that market sellers 'expectations for GEG's midfield market share and EBITDA performance in fiscal year 2024 are still high, which will lead to more negative earnings corrections.
In addition, the bank noticed signs that GEG's market share may be changing, and pointed out that the opening of its Capella Hotel in the middle of next year will help the company increase its market share. Since the epidemic, the company has enjoyed a higher valuation premium than its peers due to its net cash position and potential growth in phase 3 and 4 projects, but the situation and future will be partially reversed.
