[ET Net News Agency, 11 October 2019] Citi lowered its target price for Galaxy
Entertainment (00027) to HK$60 from HK$66 and maintained its "buy" rating.
The research house said they lowered the TP to reflect their lowered GGR and casino
EBITDA forecasts. They like Galaxy as the other long-term top pick as it has a long
tail in its expansion plan. Management recently announced that Galaxy Macau Phase 3 is
scheduled to open in early 2021. Phase 3 will feature Galaxy International Convention
Centre (with 40,000 sqm of MICE space), a 16,000-seat Galaxy Arena and a couple of luxury
hotels totalling ~1,600 rooms. Given the group's strong execution track record, Galaxy is
expected to regain market share from 2021 onwards and earnings growth re-acceleration
should follow. (RC)