Genting Bhd (GENT MK) experienced a lacklustre year in terms of share price performance, despite a strong earnings recovery driven by increased visitor numbers at its Resorts World Genting and Resorts World Sentosa properties, as highlighted in Maybank Investment Bank's (Maybank) recent report today (July 15, Monday).
Maybank maintains a BUY rating on Genting Bhd (GENT MK) with a MYR5.84 SOP-TP. Analysts at Maybank believe the recent share price weakness, amidst a 2% decline year-to-date compared to an 11% increase in the FBMKLCI, is unjustified. They point to the robust earnings recovery nearing pre-COVID levels and the potential positive impact of a stronger Malaysian Ringgit (MYR) against the USD, historically beneficial for Genting's valuations.
Maybank notes that Genting Bhd (GENT MK) stands to benefit from a potential regulatory approval for TauRx's experimental drug by year-end, with a hypothetical valuation scenario of USD15 billion for TauRx underpinning a significant upside potential to their SOP-TP of MYR9.35.
Investors keen on Genting Bhd (GENT MK) might find Maybank's optimistic outlook compelling, given the anticipated earnings rebound and potential catalysts from TauRx's drug approval, coupled with expectations of MYR appreciation against the USD.