According to a research report published in Lyon, following the good performance of Aobo Holdings in the first quarter of 2024, the bank raised non-gaming revenue forecasts and profit margin assumptions for Grand Lisboa and raised earnings before interest, taxes, depreciation and amortization (EBITDA) of 9% and 3% for 2024 and 2025, respectively, indicating that profit margins are resilient. However, the bank still needs to wait patiently for Lisboa's market share target to reach 5%. Supported by stable profit delivery, the bank also increased the target enterprise value multiplier (EV/EBITDA) to 7.2 times.
Lyon raised the target price of Aobo Holdings from HK$2.6 to HK$3.1, maintaining the “outperforming market” rating.