CIMB Equities Research said on Thursday Genting Malaysia failed to win a casino licence in upstate New York (NY).

In its research report, it  said the NY state board chose three developers that excluded any bids in Orange and Ulster counties.

“Both of Genting Malaysia’s bids were located in Orange county. While we are disappointed by the decision, Genting Malaysia’s 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,” it said.

CIMB Research said potential re-rating catalysts are the opening of the theme park ahead of expectation and additional table capacity in Genting Highlands.

However, the research house said investors should stay invested in Genting Malaysia. —The Star