Morgan Stanley: Rated GALAXY ENT (00027) "outperform the market" and raised the target price to 50.1 Hong Kong dollars.

Macquarie released a research report stating that they have given GALAXY ENT (00027) an "outperform the market" rating, and have raised the target price from 48.8 Hong Kong dollars to 50.1 Hong Kong dollars. Based on lower gambling revenue predictions, the bank has adjusted Galaxy Entertainment Group's net profit forecast for the next two years by 1.4% and 1%. The opening of the Galaxy Macau Hotel in 2025 is expected to attract more top-end middle class and VIP customers, according to Macquarie. In addition, the upgrade project at the StarWorld Hotel in Macau will replace existing gaming tables with live electronic table games, which is predicted to increase daily revenue per table from the current 90,000 Macau dollars. Macquarie pointed out that in the fourth quarter of 2024, GALAXY ENT's revenue increased by 9% year-on-year, and adjusted EBITDA increased by 15%, exceeding the bank's expectations by 1% and 3% respectively. With the continued flow of visitors after the Lunar New Year and the continuous attraction of entertainment activities to high-end middle class clients, performance in February is expected to improve.