More bad chips in store for struggling Genting after recent share price slide

Tougher headwinds will lead to bigger disappointments.

Has Genting run out of luck? After suffering a 12% share price slide in the last month, Macquarie Research warned that the worst is not yet over for the gaming giant.

Macquarie noted that although investors are mulling if GENS is starting to present a good value buy opportunity after the recent slide, there are more headwinds in store over the next 6-12 months which are not yet priced into the stock.

Among the downside risks for Genting are significant declines in VIP tourist numbers, insufficient mass market players and bad debt provisioning.

Macquarie believed that consensus estimates are too optimistic for Genting, which will set the stage for more disappointment and further downgrades.

"We believe that the quarterly results in 1Q15 and 2Q15 will show a sharp decline in VIP business which will lead to more street downgrades, thus leading to further compression of multiples,” the report noted.