CGSI cuts Genting Singapore target price to S$0.63 on hazy tourism outlook
The reduction reflects a lack of near-term catalysts for tourism and limited clarity on earnings recovery
CGSI has lowered its target price for Genting Singapore to S$0.63, citing a lack of near-term catalysts for Singapore’s tourism sector and difficulty predicting earnings recovery. The reduced price reflects lingering adverse weather conditions and persistent haze, which are expected to keep visitor arrivals subdued through the end of 2026.
Data from the Singapore Tourism Board shows a 1.8% year-on-year decline in international visitor arrivals in Q3 2026, with September marking six consecutive months of annual decline. Analysts from Genting’s peer operator Las Vegas Sands noted softer VIP volumes in July and September, coinciding with competing World Cup festivities and the onset of hazy weather.
Despite these challenges, Genting Singapore is currently trading at a valuation of 6.6 times its forward enterprise value-to-Ebitda, which is more than one standard deviation below its post-pandemic five-year average. However, CGSI maintains a "hold" call on the stock, citing limited visibility on earnings growth for FY2027 and potential downside risks such as continued drops in visitor arrivals, cost escalations, and operational friction from asset upgrades.
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