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
SiGMA North America 2026
01 de September 2026
"Technology can be global, but execution in LATAM must be local": Borut Leban on Timeless Tech's Regional Expansion
(Mexico City, SoloAzar Exclusive).- Following a highly successful showing and a 'Best Aggregator 2026' award at SiGMA North America, Timeless Tech CEO Borut Leban reflects on the company's strategic growth across LatAm. In this interview, Leban discusses the necessity of deep market localization, concrete new business opportunities, and the upcoming launch of their unified retention ecosystem, Timeless Arena.
Friday 18 Sep 2026 / 12:00
BSW Highlights Validation and Growth Opportunities in the LATAM iGaming Market
(Mexico City, SoloAzar Exclusive).- In Q&A with SoloAzar, Betting Software (BSW) Head of Digital Marketing Ilia Chumak discussed the company's standout showcase in SIGMA North America. Highlighting the incredible energy of the region, Chumak noted that the event was a major success for BSW, resulting in active negotiations and verifying multiple deals straight from their booth.
Friday 18 Sep 2026 / 12:00
SiGMA North America Explores Affiliate Marketing After Sports Events
(Mexico City, SoloAzar Exclusive).- At SiGMA North America 2026, Fernanda Figueroa, Affiliate Manager at 1win Partners, examined how affiliates can monetize sports events in LATAM beyond the initial traffic spike. During the conference “Beyond the Spike: How Affiliates Monetize Sports Events in LATAM All Year Round,” she discussed sports betting traffic, player retention, campaign localization and audience segmentation as key elements for extending the value of major sporting events.
Friday 18 Sep 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.
