[ET Net News Agency, 23 January 2020] UBS Global Research lowered its target price for
MGM China (02282) to HK$13.7 from HK$15.1 and downgraded its rating to "neutral" from
"buy".
The research house said a competitive supply of 8-9k new rooms coming to Cotai over
2020-22 could drag MGM's market share. UBS tweaked its Macau sector GGR (gross gaming
revenue) assumptions, with a 3ppt increase in mass GGR and a 2ppt cut in VIP GGR.
At 9.8x 2020E EV/EBITDA, with a weaker-than-peer growth outlook, MGM's risk/reward is
broadly balanced, UBS noted. (KL)