The company shares have been upgraded to a Buy rating following purchases by Lim Kok Thay and his family.
Malaysia.- Analysts at Maybank Investment Bank have upgraded Genting Berhad to a Buy rating, following a share purchase by Lim Kok Thay, the former CEO of the company, and his family at near all-time lows prices. Over the past week, the Lim family acquired 7.3 million shares valued at RM22.86m (US$5.1m) and CEO Tan Kong Han acquired 100,000 shares for MYR300,000 (US$67,680).
According to Maybank, the moves reflect strong support for the company. Genting shares have fallen 18 per cent since it released disappointing financial results in February. Analyst Samuel Yin Shao Yang said the decline offers a potential upside of 23 per cent along with a 3 per cent dividend yield.
He cited the possible approval of an Alzheimer’s drug from TauRx’s, which is 20 per cent owned by Genting, and a possible positive outcome of the Nevada Gaming Control Board’s (NGCB) investigation into Resorts World Las Vegas (RWLV) as potential near-term drivers for a share price recovery. TauRx‘s candidate is awaiting a decision from the UK Medicines and Healthcare products Regulatory Agency (MHRA).
Yin warned, however, that a major risk remains in the potential loss in Genting Malaysia Bhd’s US$600m lawsuit with its Bahamian partner, with a verdict expected by June 2025.
