Galaxy Entertainment has become an investor favourite and is likely to boost its mass and premium mass market share as the Macau market recovers, Bernstein Research wrote in a note upping its target share price on the company.
Explaining its rationale, Bernstein says the company will be helped by the opening of Galaxy Macau Phase 3 later this year and the opening of Galaxy Phase 4 in 2024. Its strong balance sheet has also meant that it’s the only major operator not to raise capital due to its debt-free balance sheet.
Galaxy’s mass market share will rise to 14.7 percent from 13 percent by 2022 and will further gain to 16.8 percent by 2025, Bernstein said raising its target price to $83.75 from $71.50.
The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone.
Over the years, many of the answers have been remarkably prescient in their forecasts for the near-term direction of Asia’s gaming industry. However, we can safely say that no one came anywhere close to guessing what 2020 may have had in store.