Morgan Stanley: Maintains "In line with the market" rating for NAGACORP (03918) with target price lowered to HK$2.75.

Morgan Stanley released a research report stating that due to the weak growth prospects of NAGACORP (03918) and the impending impact of impairment on its Russian business, the EBITDA for the fourth quarter and second half of this year is expected to decrease by 9% year-on-year to $73 million and $138 million, respectively. They maintain a "market-perform" rating, with the target price being lowered from HK$3.25 to HK$2.75. Morgan Stanley also mentioned that they have lowered their EBITDA forecast for Golden Entertainment for the next two years by 42% and 24% to $193 million and $302 million, respectively, which includes the impact of one-time expenses in the second quarter. Their current forecast is about 8% to 9% lower than the market consensus. The company has returned to a net cash position and the report suggests that Golden Entertainment may resume dividends next year, with a potential dividend yield of about 7%.