DBS on Monday maintained its "buy" rating on Genting Singapore but with a lower target price of S$1.49 from S$1.51 previously, saying that it believes the price rally is "not over", despite the stock's more than 45-per-cent surge since August last year.

"We believe the rally can continue. Our view is underpinned by expected positive newsflow including the continued recovery in earnings, details of a more efficient capital structure, refresh of Resorts World Sentosa, and bid for a Japanese casino," it said.

Genting Singapore reported last week that its net profit for the three months to Dec 31 slid 17 per cent to S$132.8 million, while revenue during the quarter rose 4 per cent to S$580.1 million.

Said DBS: "Despite the recent turnaround in profitability, some investors remain sceptical over the sustainability of Genting's earnings recovery. We believe as we progress throughout 2018, as Genting selectively extends credit to its VIP customers, which should translate to higher year-on-year increase in earnings, this scepticism should subside, resulting in a further re-rating of Genting's share price."

However, DBS dropped its target price on the back of the Singapore government's plans to raise the GST rate to 9 per cent between 2021 and 2025, from 7 per cent currently.