KUALA LUMPUR (Dec 18): CIMB Research has maintained its “Add” rating on Genting Malaysia Bhd (GenM) at RM4.07 with a lower target price of RM5.51 (from RM5.90) after GenM failed to win a casino licence in upstate New York (NY).

In a note Thursday, the research house said the state board chose three developers that excluded any bids in Orange and Ulster counties.

It said both of GenM’s bids were located in Orange county.

“While we are disappointed by the decision, GenM remains an Add as valuations remain compelling. Our RNAV-based target price is lowered as we remove our 39 sen RNAV estimate from NY.

“The share price is unlikely to react negatively as consensus had not imputed any contribution from NY.

“Potential re-rating catalysts are the opening of the theme park ahead of expectation and additional table capacity in Genting Highlands,” it said.