Jefferies: Maintains "Buy" rating on Galaxy Entertainment, predicts last quarter's adjusted EBITDA will increase by 10% year-on-year

Jefferies released a report predicting that Galaxy Entertainment's adjusted EBITDA for the last quarter will increase by 10% year-on-year to HKD 3.099 billion, up 5% quarter-on-quarter, with revenue rising 12% quarter-on-quarter. Gaming gross revenue is expected to rise 7% quarter-on-quarter to HKD 10.9 billion, outperforming the industry’s 3% growth, benefiting from a rich lineup of events and concerts, including performances by Andy Lau, Dao Lang, and the South Korean girl group I-DLE, as well as the continued expansion of Galaxy Macau's Phase III operations, which includes upgrades to the Starworld Hotel and the establishment of the largest live table game terminal in Macau. The firm expects the market to focus on the progress of high-end mass market operations throughout the year, based on the opening of Galaxy Capella in mid-year. The firm has lowered its forecast for Galaxy Entertainment's net profit last year by 2.4%, which is generally in line with the revised adjusted EBITDA forecast, and has largely maintained its forecasts for this year and next year, maintaining a "Buy" investment rating and a target price of HKD 47