[ET Net News Agency, 12 December 2018] Deutsche Bank lowered its target price for Sands
China (01928) to HK$30 from HK$39 largely to reflect lower 2019-20 earnings forecasts and
downgraded its rating to "sell" from "hold".
The research house cut its 2019 EBITDA forecasts for the Macau companies by 11%.
DB said the downgrade reflects its cautious view on Chinese high-end discretionary
spending over the next year. It values Sands China at 11x (previously 13x) 2019 EV/EBITDA
and sees this multiple as fair, as Macau stocks typically de-rate to this level during an
earnings revision downcycle when GGR declines. (KL)