Damo: Raising the target price of Galaxy Entertainment (00027) to HK$44 is expected to increase the payout ratio to 60%

The Zhitong Finance App learned that Morgan Stanley released a research report saying that in response to Galaxy Entertainment's (00027) mid-term performance update forecast, GEG's dividend ratio forecast for 2025 to 2027 was raised from 50% to 60%, and the dividend forecast per share was increased by 19%. Due to higher operating expenses expectations, the bank also lowered its EBITDA forecast for 2025 to 2027 by 1%, and the earnings per share forecast from HK$2.39, HK$2.58 and HK$2.73 to HK$2.36, HK$2.56 and HK$2.72, and the target price increased from HK$40 to HK$44. Dama expects that the opening of the Capella Hotel will help GEG increase its market share and give it a “in sync with the market” rating, but it also warned that if the industry resumes dividends and the company's market share continues to weaken, some potential premiums may be reversed.