04 Dec 2009 07:57 CST DJ MARKET TALK: Genting Singapore May Fall After Casino Open - CS


2357 GMT [Dow Jones] STOCK CALL: Credit Suisse warns while there is much hype around Genting Singapore's (G13.SG) imminent casino open, the shares could be left with a hangover. Broker notes going by share price performance of other gaming companies after their casino openings in Macau, share prices tend to fall after casino launch. Adds, expectations for Genting Singapore's Resorts World Sentosa casino, slated to open early 2010, may be too optimistic. "We are also concerned that market expectations on Singapore's first-year casino revenues are too high and could potentially disappoint." Says Genting Singapore is one of most expensive casino stocks globally, trading on FY11 PE ratio of 31.6X, also most expensive large cap in Singapore. Maintains Underperform rating, unchanged S$0.90 target price. Shares closed flat at S$1.09 yesterday. (KIG)