[ET Net News Agency, 5 December 2018] UBS Global Research lowered its target price for
MGM China Holdings (02282) to HK$17 from HK$17.3 and maintained its "buy" rating.
The research house lowered its Macau gaming sector GGR growth assumptions from 5% to -1%
YoY for 2019, given more cautious VIP and premium mass outlooks.
UBS believes the introduction of more VIP junkets and The Mansion could drive share
gains for MGM China in 2019. Overall, it expects the company to gain about 110bp of total
GGR share and about 150bp of VIP GGR share in 2019, driving EBITDA growth of 20% YoY.
As such, it thinks current valuation of 14.3x 2019 EV/EBITDA against its five-year
average of 13.1x is warranted, given MGM Cotai's growth outlook. (KL)