Market Overview

Jefferies Lowers Bloomberry Rating To 'Weak Buy'


In a report published Thursday, Jefferies analysts downgraded the rating on Bloomberry (OTCMKTS: BBRRF) from Buy to Weak Buy, while reducing the price target from Php13.80 to Php13.25, citing the release of the company's 1Q15 results.

Bloomberry reported its gross gaming revenue (GGR) at Php8.1B, 18.5 percent short of the Jefferies estimate. "The result leads us to believe that the ramp-up of operations in SkyTower is progressing slower than expected," the analysts said.

Bloomberry reported a net loss of Php533M, substantially below the Jefferies estimate of Php1.1B. GGR climbed 14.6 percent y/y, but was down 9 percent sequentially.

"We believe that the significantly lower EBITDA and net loss exhibited in 1Q15 were primarily due to the ramp-up of operations in Solaire, especially with the recent opening of SkyTower…
BLOOM can no longer capitalize interest expense with the completion of SkyTower," the analysts wrote.

"With the continued ramp-up of operations, 1Q15 results may not be reflective of fullyear results. Nevertheless, we are taking a more conservative stance in terms of our GGR growth estimate," the analysts added.

The EPS estimates for FY15 and FY16 have been reduced from Php0.40 to Php0.31 and from Php0.59 to Php0.44, respectively.

Posted-In: JefferiesDowngrades Price Target Reiteration Analyst Ratings


Related Articles (BBRRF)

View Comments and Join the Discussion!

Latest Ratings

NVSTBank of AmericaInitiates Coverage On
PINGBank of AmericaInitiates Coverage On21.0
DALStephens & Co.Downgrades57.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Upland Software Announces $60M Credit Facility for Acquisitions

ZELTIQ(R) Aesthetics Reaches 2,000,000th CoolSculpting Treatment Cycle Milestone