SHARES of Malaysian power to gaming firm Genting fell 4.5 per cent to RM4.24 by mid-day, set for its lowest close since October 30.
The company reported a third quarter loss of RM40.38 million and warned that its UK gaming operations would be hit.
The company said that its power division would be hit by lower demand and lower prices.
Citibank today cuts Genting’s target price to RM3.79 from RM3.88 ringgit and cut fiscal 2008 earnings by 6.5 per cent.
JPMorgan Chase & Co today downgraded the stock to “underweight” from “overweight” and slashed its 12-month price target to RM3.70 from RM6.40.
“With significant earnings headwinds expected ahead as a result of the current economic slowdown coupled with the existing overhang at Resorts World at Sentosa in Singapore, we think it would be difficult for Genting shares to outperform the market over the next six to nine months,” JPMorgan analyst Sit Yin Wong said in a research note.
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