KUALA LUMPUR: Hong Leong Investment Bank Bhd (HLIB) has raised its target price for Genting Bhd following its first quarter results that come in within expectations.
HLIB said Genting is on track for sustained recovery momentum, with multiple factors in play contributing to its positive outlook.
It noted that the group is expected to benefit from the continued recovery in foreign visitations at both Resorts World Genting and Resorts World Sentosa, driven by the increasing frequencies of global flights, as well as the visa-free travel pact between China and both Malaysia and Singapore.
Furthermore, the performance of Resorts World Las Vegas is projected to be underpinned by the growth in convention visitations and major events in Las Vegas.
The firm adjusted Genting's forecasts upwards for financial year 2024 (FY24)-FY25 by 16-24 per cent as it raised its revenue and pre-tax earnings margin assumptions.
"At the same time, we introduce FY26 projection with a 12 per cent year-on-year core profit after tax and minority interests growth," it said in a note.
Genting's first quarter earnings of RM683.5 million came in above HLIB and consensus' expectations at 39 per cent and 41 per cent of full-year forecast respectively.
It maintained "Buy" on the stock with a higher target price of RM7.60 from RM7.12 previously.