Shares of casino operator Genting Singapore <GENS.SI> rose as much as 2.5% on Monday after a foreign brokerage raised its target price for the firm by 35% to $2.60.
At 10:24 a.m., shares of Genting Singapore were trading at $2.02 and around 33 million shares had changed hands.
“There was a ‘buy’ call by Deutsche Bank and they raised their target price, so investors may be reacting to that,” said a local trader, adding that he saw resistance around $2.09 or $2.10.
Deutsche has raised its 2011 estimates for Singapore’s gaming market size to US$6 billion ($7.9 billion), up 28% from the current run rate, and said it remains positive on the city-state’s long-term gaming prospects.
The bank also increased its net profit forecast for Genting Singapore’s 2011-2012 financial years by 34-42%, adding that its 2011 forecast is 15% above consensus.