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
AffPapa Conference Madrid 2026
18 de May 2026
Evoplay Highlights Innovation and Global Growth at AffPapa Madrid 2026
(Madrid, SoloAzar Exclusive).- Zhanna Tarakanova, PR Team Lead at Evoplay, shares insights on the company’s sponsorship of AffPapa Conference Madrid 2026, key industry trends, and upcoming expansion plans.
Friday 05 Jun 2026 / 12:00
GSH Online Media CEO Reflects on AffPapa Madrid 2026
(Madrid, SoloAzar Exclusive).- At AffPapa Conference Madrid 2026, Viorel Stan, CEO of GSH Online Media, discussed the growing influence of AI across the affiliate sector, the evolution of sports betting acquisition strategies, and how the company is positioning itself for long-term growth through technology, product development, and new B2B solutions.
Thursday 04 Jun 2026 / 12:00
"Industry Referees for a Day" Boosts Networking at AffPapa Madrid 2026
(Madrid, SoloAzar Exclusive).- At the AffPapa Conference Madrid 2026, held May 18–20 in Spain, SoloAzar once again embraced interactive formats that brought together executives, operators, affiliates, and suppliers from the online gaming industry. This year, the media outlet introduced “Industry Referees for a Day”—a social media video series inspired by soccer and refereeing. Sector leaders were invited to use red, yellow, and green cards to highlight practices that either benefit or harm the iGaming ecosystem, while also sparking fresh networking opportunities among attendees.
Wednesday 03 Jun 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.
