[ET Net News Agency, 10 June 2020] Morgan Stanley lowered its target price for SJM
Holdings (00880) to HK$11 from HK$11.5 and maintained its "overweight " rating.
The research house cut its 2020 EBITDA from positive HK$1.2bn to negative HK$578m, while
2021 EBITDA was also lowered by 26%. This is because Morgan expects prolonged business
weakness for 2020 and social distancing will hurt Lisboa Palace's ramping up in 2021, even
though it also lowered its opex estimates slightly by 2-3% for 2021-22 as Macau operators
will benefit from continued cost reduction.
Morgan's 2022 estimates stayed largely the same. But its EPS estimates changed more
significantly as fixed cost estimates stayed mostly unchanged. (KL)