Bernstein reports, due to strong cash flow generation, resumption of sizeable share buyback, and a stabilizing Singapore gaming market Genting Singapore PLC (GENS:SP )stocks are expected to outperform.

According to Asia Gaming Brief, the casino operator’s mass and non-gaming assets are expected to generate strong cash flow considering Genting’s large and diversified product offerings, including MICE, mass, VIP, hotels, retail, Marine Life Park and Universal Studios theme park. “We forecast EBITDA to grow at 8 percent 2015E-2018E CAGR and Adjusted EPS to grow at 1 percent CAGR, and, We forecast only 30% of its gross revenues will come VIP, while 27% of net revenues are derived from non-gaming,” according to Bernstein.

Genting Singapore is also making progress on it’s A/R issues and is focusing on further developing the mass business. While VIP business remains weak, over the last three quarters mass continues to be stable, therefore it’s expected a slow recovery is on the horizon for both VIP and mass in 2016. Analysts at Bernstein say Genting Singapore stock is below its intrinsic value, and subsequently a buying opportunity, despite first quarter results and a sharp decline in net profits.

To account for Bernstein’s current view of the Singapore market, as well as the latest market developments, including Marina Bay Sands results, it has updated estimates for last year’s fourth quarter (Y15Q4). Bernstein forecast adjusted the earnings before interest, taxes, depreciation and amortization (EBITDA) to $208 million on revenue of $633 million, according to the media outlet. On February 18, Genting Singapore will report its Y15Q4 results.

Genting Singapore PLC is a Singapore-based company that develops resort properties and operates casinos through its subsidiaries. The company’s footprint can be found in Australia, Malaysia, The Americas, United Kingdom and the Philippines.

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