Morgan Stanley released a research report stating that the “reduced holdings” rating for Aobo Holdings (00880) predicted earnings per share for 2024 to 2026 at $0.05, 0.19, and $0.28, while the target price was raised from HK$1.9 to HK$2.15.
The bank said it lowered the market share forecast for the company's 2024 self-operated midfield gaming revenue calculation to 7.3%. Among them, the market share of Shanghai Lisboa is expected to rise to 1.4% from 1.3% in the previous quarter. At the same time, it also predicts that the operating expenses and midmarket investment amount of Shanghai Lisboa will increase further, dragging down the annual EBITDA by 4%.
However, Damo predicts that the operating and maintenance expenses of the Australian Expo will be at a low level this year, driving earnings per share to increase by 3%. The bank also lowered its 2025 EBITDA forecast by 7% due to lower midmarket share expectations. Earnings per share forecast for 2025 was lowered by 9% as a result.