Genting Spore earnings estimates cut at Nomura, but long-term positive

Prospects for a return to international tourism for Singapore have dimmed in 2021 due to new Covid outbreaks, triggering a cut in earnings forecasts for Genting Singapore by Nomura Research. The firm it cutting its estimates for adjusted EBITDA for 2021 and 2022 by 15 percent and for net profit by 26 percent and 22 percent respectively

"While earnings in the near-term are unlikely to surprise on the upside, we reiterate our positive stance on GENS to play an eventual investor rotation into tourism / reflation names," the firm said. "We believe GENS will be one of the better tourism recovery stories due to its balance sheet strength and the relatively better control of COVID-19 in Singapore, along with fast pace of vaccination."