Movement Alert|Galaxy Entertainment Falls 3.13% in Regular Trading, Multiple Brokers Cut Target Prices as Macau Sector Enters Slow Lane

Market Focus06-15

On June 15, Galaxy Entertainment fell 3.13% in regular trading, trading at HK$30.4/share, with turnover of HK$343 million. The decline comes amid broad-based weakness across the Macau gaming sector.

On the news front, multiple investment banks recently lowered their target prices for Galaxy Entertainment and the broader Macau gaming sector. CLSA cut its target price on Galaxy Entertainment from HK$47.4 to HK$41.4, citing the industry entering a slow lane with overall revenue growth expected to decelerate to just 4% year-over-year due to high base effects and a lack of incremental growth drivers. Separately, Morgan Stanley lowered its target on Galaxy Entertainment from HK$39 to HK$37, maintaining an equal-weight rating. Despite the downgrades, CLSA still names Galaxy Entertainment as its top sector pick given its stable revenue market share, EBITDA margins, and strong balance sheet.

Within the Casinos and Gaming sector, the overall sector declined broadly. Among individual stocks, Sands China down 3.13%, MGM China down 0.1%, Wynn Macau down 0.18%, SJM Holdings down 2.87%, Melco International down 2.89%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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