Here's how Galaxy Entertainment will milk benefits from Grand Waldo acquisition

Daily yield to increase three times.

According to Maybank Kim Eng, it maintains its BUY rating on Galaxy and raise its target price to HKD42.80 on a 5% increase in EBITDA forecasts from 38 additional gaming tables and 318 hotel rooms following the acquisition of Grand Waldo. 

Here's more:

We also boost the valuation of its 10m sq ft of land in Cotai to HKD1,000/sq ft based on estimated land values from its latest acquisition. Galaxy reported a 15% YoY increase in 1Q13 revenue to HKD15.2b while adjusted EBITDA was up 29% YoY to HKD2.8b. This is 6% and 1% above our and Bloomberg consensus estimates respectively.

Galaxy Macau’s mass market segment continues to deliver, with 1Q revenues up 42% YoY to HKD2.3b, resulting in higher EBITDA margins of 22%.

The 38 additional tables of Grand Waldo could potentially generate three times more daily yield (FY13E: USD10.5k/mass table/day) under the management of Galaxy Macau, as Grand Waldo undergoes a revamp. Furthermore, Galaxy will be added to the Hang Seng Index on 17 Jun 13.