The research house maintained its outperform rating on the stock but lowered its target price to RM1.95 from RM2.75 previously. It recommended an ideal entry point of RM1.60 given the market volatility.
The stock was last traded at RM1.82 a share on Wednesday.
Kenanga slashed its FY20 earnings estimate for Magnum by 8% owing to the cancellation of draws during the MCO period.
"Based on our FY20 ticket sales assumption of RM18.1m per draw, there will be a loss of RM217m ticket sales in these four weeks," it said.
The research house also reduced its FY21 estimate slightly by 1.9% despite no changes in the assumption of 166 draws.
To recap, Magnum's share price was not affected by the Covid-19 outbreak initially as the stock was hovering about 9% below its 52-week high of RM2.90 from Dec 2019 to Feb 2020.
The MCO on March 18 escalated the sell-down and pushed the stock to its 52-week low of RM1.70 last week.
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