Genting Singapore shares dropped by just over 10% on May 13 after reporting weaker 1QFY2026 earnings, which triggered a wave of downgrades from analysts.
Genting Singapore shares dropped to as low as 61 cents before gaining just that slightly to close at 62 cents for the day, extending a drop of more than 15% year to date.
To help staunch the sell down, Genting Singapore bought back 4 million shares at between 61.5 cents and 64.5 cents, spending a total of nearly $2.55 million.
However, the quantum bought back was but a tiny fraction of the nearly 336.4 million that changed hands earlier today, making this the most actively traded counter.
The last time Genting Singapore bought back share was nearly two months ago on March 23 when it paid 67 cents each for half a million shares.
Chee Zheng Feng of DBS Group Research has downgraded his call for Genting Singapore to "hold" from "buy" following what he calls "disappointing" 1QFY2026 results. His target price has been cut from 85 cents to 67 cents.
On May 12, the resort operator reported that revenue for the first quarter of the year was down 3% y-o-y to $608 million, led by lower gaming revenue, while non-gaming revenue, which typically accounted for a smaller proportion of the total, was up.
Genting Singapore attributes the softer gaming volume partly to lower VIP visitations, which, in turn, was due to tighter credit extended by the casino.
Coupled with higher costs, Genting Singapore's earnings for the quarter was down 55%.
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"In our view, a comprehensive rethink of its operational strategy and asset enhancement initiatives may be required to restore the company to its historical profitability levels," he adds.
Tay Wee Kuang of CGS International has turned more cautious on this counter as well, as he lowered his target price from 76 cents to 67 cents, while keeping his "hold" call.
"Despite the introduction of new attractions, such as Minion Land in Universal Studios Singapore, The Weave, The Singapore Oceanarium and The Laurus Hotel, Genting Singapore’s non-gaming revenue grow by only 8.3% y-o-y in 1QFY2026, which was insufficient to mitigate the decline in gaming revenue,” he notes.
Chu Peng of OCBC Group Research has maintained her "buy" call but has lowered her FY2026 adjusted EBITDA estimate by 14% to account for the headwinds, leading to a lower fair value of 77 cents, down from 87 cents.
"Patience is required as earnings recovery may take longer amid persistent cost pressures and external uncertainties," she warns.
