UBS downgraded Genting Singapore (GENS:SP) (OTC:GIGNY) to Neutral from Buy and lowered its price target to SGD0.64 from SGD0.90.
The firm cut its 2026-27 EBITDA estimates by 15% on lower revenue and margin assumptions following weaker than expected first-quarter results. Both gaming and non-gaming performance have been slower than anticipated, partly due to increased competitive pressure from Marina Bay Sands.
The company completed asset enhancements including the Laurus Hotel, the Weave, and an Oceanarium since the second half of 2025. Additional operating expenses have eroded margins.
Management expects the ramp-up to continue in 2026, while the initiatives may take time to translate into tangible benefits. The company maintains its stance to protect its SGD0.04 dividend per share.
The stock trades at 6.7 times enterprise value to EBITDA and offers a 6% dividend yield. According to Bond.az data, the company currently trades at an EV/EBITDA of 6.42 with a dividend yield of 5.78%. Notably, the stock appears undervalued based on Bond.az’s Fair Value analysis and trades just 1% above its 52-week low. Bond.az tip highlights that the company has maintained dividend payments for 15 consecutive years. UBS said the valuation provides downside support as the firm awaits better execution from the company.
