DBS lowers Genting Singapore to ‘hold’ on macro risks and index exclusion threat
Gaming revenue outlook weakens amid tariff concerns and MSCI index uncertainty.
Key points:
– DBS downgrades Genting Singapore from “buy” to “hold”
– Target price trimmed from S$0.90 (US$0.67) to S$0.80
– Analysts flag weakening regional tourism and potential MSCI exclusion
As reported by The Business Times, DBS has revised its outlook on Genting Singapore, cutting the stock to a “hold” rating and reducing its target price to S$0.80 from S$0.90. The downgrade reflects mounting macroeconomic challenges, including upcoming US tariffs and a risk of exclusion from the MSCI Singapore Index.
Genting Singapore, which operates the Resorts World Sentosa integrated resort, had been expected to benefit from ongoing property launches. However, DBS analysts now predict a more subdued performance for the second half of FY2025, citing economic uncertainty and pressure on consumer spending.
With tariffs of up to 36% targeting South-east Asian exports, DBS expects softer inbound tourism and weaker discretionary spending among regional visitors – Genting’s primary customer base. As a result, the bank has lowered the company’s EBITDA forecast by 2% for 2025 and 3% for 2026.
Good to know: Genting Singapore’s market capitalisation has dropped to around S$4.4bn, placing it near the lower bound for MSCI index inclusion
The report also noted that unlike Western tourists, regional players are more likely to reduce gaming budgets under financial strain.
Adding to the concern is the likelihood that Genting Singapore may be removed from the MSCI Singapore Index in the upcoming review. Its shrinking market cap, now among the lowest of current constituents, leaves it vulnerable to exclusion. The next MSCI announcement is due on 7 August, with any changes to take effect on 27 August.
Shares in Genting Singapore have declined 3.3% since the start of the year.
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