"Upcoming 1QFY21 result is expected to be weaker given the on-going MCO 2.0 in Malaysia.
"However, business volume is likely to recover strongly from 2HFY21 onwards due to the vaccination deployment which has just started recently," it said.
In FY20, results were below Kenanga's expectation with a core profit of RM207.7mil, which made up 40% of its estimate. However, the group beat market expectation with the consensus expecting a net loss of RM412.2mil.
Kenanga cut FY21 earnings forecast by 3%, mainly on adjustment for MCO 2.0 closure for Genting Malaysia's Resort World Genting operation but raised Genting Plantation earnings slightly by 1%.
It introduced its FY22 forecast with earnings expected to jump 70% from the low base.
Kenanga maintained its "outperform" recommendation on the stock and raised the target price to RM5.93 from RM5.90 based on unchanged five-year mean discount of 42.7% to its sum-of-parts valuation.
"We believe Genting is a good pick for recovery play as we believe its business should recover quickly once travelling restriction are lifted which was witnessed earlier by Gen Singapore and Genting Malaysia enjoying pent-up business volume post business resumption," it said.