SINGAPORE (May 4): DBS Group Research is downgrading Genting Singapore to "hold". This comes after slashing EBITDA figures for the casino and hotel operator due to the brokerage's expectations of a longer J-shaped recovery, attributable to a larger drop in tourist arrivals, extended social distancing measures, and a sharper contraction in Singapore's economy. That said, Genting Singapore still enjoys an attractive valuation and relatively strong performance compared to its regional peers. 

“In our view, the risk to reward set up is neutral after the significant 54% rebound in Genting’s share price from its bottom in March, as the brutal hit to its earnings over the next two years is largely counterbalanced by its attractive dividend yield and compelling valuation,” remarked analyst Jason Sum, “We will be staying on the sidelines until the regional COVID-19 situation stabilises, and cross-border travel restrictions in the region loosen.”  

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