Morgan Stanley Lowers Galaxy’s Rating Due to Unexpected Decline in Macau’s General Market Share
Wednesday 17 de April 2024 / 12:00
⏱ 1 min read
(Macau).- Investment bank Morgan Stanley has downgraded Macau’s Galaxy Entertainment Group (GEG) from Overweight to Even-weight, citing the absence of mass market share gains since the opening of Galaxy Macau Phase 3 and anticipating further market share losses in 1Q24.
In a Wednesday note, analysts Praveen Choudhary and Gareth Leung said they were now 13% below consensus on GEG’s expected EBITDA in both 2024 and 2025 because consensus had assumed mass market share gains as a result of Phase 3 that did not materialize.
They added that consensus also has Galaxy’s 2024 mass market share at 20%, 170bps higher than the 18.5% it achieved in 2H23. Instead, Morgan Stanley believes GEG’s mass market share in 1Q24 will actually decline further to 17.7%, noting “potential operating deleverage as the company increases opex to gain market share and for non-gaming investment.”
Despite this loss in share, the analysts observe that GEG continues to trade at a premium to its Macau peers to the tune of 12% over Sands China and 20% over the rest, likely due to its net cash position and expectations of growth from Phase 3 and the upcoming Phase 4 development.
Nevertheless, while the bank believes GEG’s EBITDA growth will be slower than its peers in 1Q24, it added “we might turn more positive if we saw a more visible trend of market share gains from 2H24 on.
“Galaxy has a very strong track record in running and ramping up operations. Also, some investors favour its net cash position amid an uncertain China macro.”
Morgan Stanley has cut its Target Price on GEG shares by 17% to HK$38.
Categoría:Gaming
Tags: Sin tags
País: Macao
Región: Asia
Event
PERU GAMING SHOW – PGS 2026
17 de June 2026
Matías Magallón, CEO of ALPS after PGS 2026: "The industry's conversations are becoming more mature"
(Lima, SoloAzar Exclusive).- Following its participation at Peru Gaming Show 2026, ALPS CEO Matías Magallón discusses the company's objectives in Peru, the industry's evolving priorities and the opportunities emerging across Latin America.
Wednesday 08 Jul 2026 / 12:00
At PGS 2026, MINCETUR Explained How to Handle a Regulatory Inspection: Rights and Obligations for Compliance
(Lima, SoloAzar Exclusive).- As part of Peru Gaming Show (PGS) 2026, one of the most important gaming industry events in Latin America, José Luis Pérez, Director of Organization and Registration at MINCETUR’s General Directorate of Casino Games and Slot Machines, delivered a conference for land-based gaming operators. During his presentation, he explained the rights and obligations of license holders during regulatory inspections, detailed how inspectors carry out their duties, and emphasized the importance of fostering a strong culture of compliance to strengthen the regulated market.
Tuesday 07 Jul 2026 / 12:00
Reusable Identity and Smoother Access: JUMIO’s Approach at Peru Gaming Show 2026
(Lima, SoloAzar Exclusive).- Peru Gaming Show (PGS) 2026 hosted the conference “Reusable Identity: Less Friction, More Play – How to Simplify Player Access,” led by Pilar Pereira, Director of Strategic Alliances at JUMIO. She explained how the evolution of digital identity is transforming user experiences on online betting platforms amid strong global growth in the sector.
Friday 03 Jul 2026 / 12:00
SUSCRIBIRSE
Para suscribirse a nuestro newsletter, complete sus datos
Reciba todo el contenido más reciente en su correo electrónico varias veces al mes.
