Macquarie downgrades Genting Singapore share to Neutral from Outperform.
According to Dow Jones, the Genting Singapore target price cut to account for lower longer-term growth projections. The current price is factoring in overly optimistic growth assumptions.
Genting Singapore patronage may be affected when Galaxy Entertainment opens its integrated resort in Macau in 1Q11.
Also the increased intervention in gaming business by Singapore government can't be ruled out.
Recently Singapore government order both Singapore casino to stop bus services shuttling Singaporeans.
Also the political sensitivity to locals gambling and raises the level of political risk in the market.
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