SINGAPORE: The share price of Genting Singapore hit a two-year low after analysts downgraded the stock due to weak third-quarter results.
The company’s shares dropped by as much as 7.7%, hitting their lowest level since October 2022, before recovering slightly, as reported by The Edge Singapore.
Genting reported a net income of S$79.4 million for the three months ending in September, missing expectations by a wide margin.
JPMorgan Chase & Co. analysts, including DS Kim, said in a note that the third quarter was another miss, even though expectations had already been lowered after the company’s performance in the second quarter.
The brokerage downgraded the stock from overweight to neutral, expecting the company to start showing significant earnings growth from the second quarter of next year.
It also reduced its share price target by 8%, bringing it down to S$0.92.
So far this year, Genting’s shares have fallen by around 20%, making it one of the worst performers on the Straits Times Index. Meanwhile, the index has risen by 15% this year.
Morgan Stanley also changed its rating on the stock from overweight to equal-weight, pointing to stronger competition from Marina Bay Sands and a weaker outlook for the property and hotel markets. /TISG
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