{"id":328121,"date":"2024-05-30T22:15:51","date_gmt":"2024-05-30T14:15:51","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=328121"},"modified":"2024-05-30T22:15:53","modified_gmt":"2024-05-30T14:15:53","slug":"stock-in-focus-bloomberry-resorts-corp-bloom-30-may-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-bloomberry-resorts-corp-bloom-30-may-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: Bloomberry Resorts Corp. (BLOOM) – 30 May 2024 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>BLOOM<\/td><\/tr>
Company Name<\/strong><\/td>Bloomberry Resorts Corp.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>30 May 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 14.26<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Despite some slowdown in recent quarters, which reflects the broader weakness in discretionary spending, BLOOM remains our top brick & mortar pick for the gaming sector. The recent price action suggests that the market is still pricing in the successful launch of Solaire North, but we believe there is still more upside to the stock since its current FY24E EV\/EBITDA of 7.7x remains below its 5-year average of 9.1x. <\/p>\n\n\n\n

As such, we maintain our BUY on BLOOM based on consensus Target Price of P14.26. Note however, that there may be future downweights on the stock from index providers due to the decrease in public float from the GGAM transaction.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

Solaire North officially opens its doors<\/h3>\n\n\n\n

BLOOM\u2019s new integrated resort in Quezon City, Solaire North, officially opened its doors to the public on Saturday, May 25. The new 1.5-hectare property boasts 2,670 slot machines and 163 gaming tables, as well as a 526-key hotel tower. BLOOM envisions Solaire North to be a gaming destination for the northern cities of NCR as well as adjacent provinces.<\/p>\n\n\n\n

Bringing gambling to the Northern hordes<\/h3>\n\n\n\n

Solaire North\u2019s configuration obviously targets the mass market segment, with more slot machines than casino tables compared to its sister in Entertainment City. BLOOM\u2019s new location has 42% more slot machines than Solaire EC, and less than half of the table count. This could be favorable, as company guidance puts EBITDA margins for slots at around 45-50% while margins for tables tend to be around 40%. The mass market focus also makes sense considering the demographics of the area that the property aims to serve.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>