Morgan Stanley raises price target for SJM Holdings to HK$28

Morgan Stanley has upped its rating on SJM Holdings’ stock to overweight from equal rate and raised its price target to HK$28 a share. The firm says SJM’s Cotai casino project is worth as much as $5.40 to the stock price. 

Morgan Stanley says SJM has the highest free cash flow yield and dividend yield of all the Macau gaming names, but says some concerns remain. The company is a latecomer to Cotai and therefore may see its market share erode in the interim.