[ET Net News Agency, 15 October 2018] BofA Merrill Lynch lowered its target price for
Galaxy Entertainment (00027) to HK$61.2 from HK$82.5, and maintained its "buy" rating.
The research house said Galaxy has established a strong track record. It gained market
share in 13 out of the last 20 quarters and its EBITDA share of the market increased to
25% in 1H 2018 from 18% in 2013 thanks to strong execution, superior product, and
improving business mix.
Contrary to the common belief, Galaxy is no longer a VIP play, BofAML said.
It has the second largest hotel room inventory and non-gaming offerings in Macau, so it
can compete well in mass. It is trading at an attractive 10x 2019 EV/EBITDA, which is 22%
below its historical average. (KL)