Morgan Stanley released a research report stating that after the second quarter performance of Sands China (01928) fell short of expectations, its target price was lowered from HKD 21 to HKD 18, and maintained a rating of "in sync with the market".
The bank lowered its EBITDA forecast for Sands China in 2024-2026 by 9%, 4%, and 5%, to USD 2.2 billion, USD 2.8 billion, and USD 3 billion, respectively, and lowered its EPS by 14%, 6%, and 7% during the period.
Morgan Stanley also stated that it would remove the dividend for the company in 2024 and reduce the dividend for 2025 and 2026 to HKD 0.5 and HKD 1, respectively. The bank expects the company's EBITDA for the third and fourth quarters to be RMB 0.535 billion and RMB 0.633 billion, respectively, while in the second quarter, it was RMB 0.561 billion.