Morgan Stanley's report pointed out that after Sands China (01928.HK) performed below expectations in the second quarter, EBITDA forecasts for 2024 and 2025 were lowered by about 10%, which was 10% lower than market expectations. The target price was lowered from HK$26 to HK$22, with a rating of 'shareholding'.

Morgan Stanley pointed out that reasons for the downward adjustment of EBITDA forecasts include the poor performance in the second quarter, with EBITDA profit margins dropping from around 35% to 32-33%; significant downward revisions of 10% and 30% of non-gambling or retail income forecasts, reflecting the deterioration of high-end consumption in mainland China, as well as poor recent performance and guidance of European luxury goods companies have also reflected this; due to the poor macro environment, the bank will lower its mid-term gambling revenue forecast by 3-4%, and expects the mid-term gambling revenue in the second half of the year to recover to 113% of pre-epidemic levels.