[ET Net News Agency, 19 August 2020] Goldman Sachs raised its target price for SJM
Holdings (00880) to HK$11.3 from HK$9.9 and maintained its "buy" rating.
The research house cited SJM management on a conference call sounding fairly optimistic
about the pace of Macau's GGR recovery ahead given the positive responses and more
enquiries by mainland Chinese seeking to visit Macau as of late.
Goldman believes the earlier-than-expected resumption of IVS (Individual Visit Scheme)
applications should give SJM more time and flexibility to plan ahead for its upcoming
Lisboa Palace opening.
Management continues to expect Lisboa Palace could potentially double SJM's group EBITDA
in 2-3 years' time. Goldman forecast 1690%/38% EBITDA growth in FY2021/22 such that its
FY2022 EBITDA would be 63% above its level in FY2019. (KL)