Bloomberry Resorts (BLOOM PM) Philippines
Consumer Discretionary
Bloomberry owns and operates integrated casinos in the Philippines. It has strong fundamentals supported by robust domestic demand and accommodative local regulatory environment. Its under-construction casino, Solaire North, will likely commence operation by early 2024 and will significantly boost its capacity in the non-VIP segments. That along with an expected stronger resumption in foreign visitation going forward should help the company post pre-pandemic level profitability. The stock is up 25% since recommendation (Dec 22). Trading at a 2 year forward P/E of 10.3x and 7.6x forward EV/EBITDA, the stock still has an upside potential of 35%-40% in 12-18 months.
Edition: 157
- 31 March, 2023