[ET Net News Agency, 22 July 2020] HSBC Global Research cut its target price for MGM
China (02282) to HK$10.8 from HK$11.5 and maintained its "buy" rating.
The research house continues to think that its new Cotai capacity is well-positioned to
capture market share if management can continue to efficiently ramp up the property. It is
expected to benefit from operating leverage once growth resumes. Key challenges lie in how
to defend market share amid the next openings in FY2021.
HSBC changed its FY2020 and FY2021 EBITDA forecasts by -124% and -8%, respectively. (KL)