[ET Net News Agency, 19 November 2019] Morgan Stanley lifted its target price for
Galaxy Entertainment (00027) to HK$55 from HK$52 and maintained its "equal-weight" rating.
The research house expects Phase 3 to open in January 2021, but before that, Morgan
expects slower growth (-1% YoY corporate EBITDA growth in 2020), however, market share
gain should be visible in 2021 (+13% YoY EBITDA growth in 2021). Morgan expects 4Q EBITDA
of HK$4.2bn (-4% YoY, +1% QoQ).
It added that Galaxy has higher EBITDA exposure to the VIP and premium mass segment
compared to peers. These segments could continue to see downside from the macro slowdown
and smoking ban in 2019/2020. (KL)