Jefferies Says Asia Gaming Still Surprising to the Upside (MGM) (WYNN) (LVS)
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Price: $42.43 --0%
Rating Summary:
28 Buy, 10 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 9 | New: 13
Rating Summary:
28 Buy, 10 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 9 | New: 13
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Analysts at Jefferies made positive comments on casino stocks today following meetings in Macau and Singapore saying Asia is still surprising to the upside.
"Our takeaways from mtgs in Macau and Singapore suggest that robust visitation and revenue trends should continue for some time," analyst David Katz said. "While uncertainty still remains regarding development in Cotai and Singapore markets, our view is that those operators who execute and navigate the cultural dynamics of their respective markets will have the most to gain, which supports our bullish stance on MGM and WYNN and our more balanced stance on LVS."
The firm said their property tours and management meetings in Macau indicate that trends in the near term remain stronger than expected and the longer term prospects remain positive.
Meeting in with Genting's Resorts World and LVS' Marina Bay Sands confirm our view that Singapore should continue to be a compelling market in terms of profitability and returns, irrespective of market share.
The firm reiterated their Buy rating on MGM (NYSE: MGM) and raised their price target from $18 to $19. The firm maintained their Buy rating and $174 price target on Wynn Resorts (Nasdaq: WYNN). The maintained a Hold rating and $45 price target on Las Vegas Sands.
The firm adjusted estimates as follows:
Las Vegas Sands: Current Qtr maintained at $0.47. Current Year down from $1.88 to $1.81. Next Year up from $2.23 to $2.25.
MGM: Current Qtr up from ($0.12) to ($0.11). Current Year up from ($0.56) to ($0.49). Next Year up from ($0.16) to ($0.03)
Wynn: Current Qtr up from $0.69 to $0.82. Current Year maintained at $4.02. Next Year down from $5.20 to $5.06.
"Our takeaways from mtgs in Macau and Singapore suggest that robust visitation and revenue trends should continue for some time," analyst David Katz said. "While uncertainty still remains regarding development in Cotai and Singapore markets, our view is that those operators who execute and navigate the cultural dynamics of their respective markets will have the most to gain, which supports our bullish stance on MGM and WYNN and our more balanced stance on LVS."
The firm said their property tours and management meetings in Macau indicate that trends in the near term remain stronger than expected and the longer term prospects remain positive.
Meeting in with Genting's Resorts World and LVS' Marina Bay Sands confirm our view that Singapore should continue to be a compelling market in terms of profitability and returns, irrespective of market share.
The firm reiterated their Buy rating on MGM (NYSE: MGM) and raised their price target from $18 to $19. The firm maintained their Buy rating and $174 price target on Wynn Resorts (Nasdaq: WYNN). The maintained a Hold rating and $45 price target on Las Vegas Sands.
The firm adjusted estimates as follows:
Las Vegas Sands: Current Qtr maintained at $0.47. Current Year down from $1.88 to $1.81. Next Year up from $2.23 to $2.25.
MGM: Current Qtr up from ($0.12) to ($0.11). Current Year up from ($0.56) to ($0.49). Next Year up from ($0.16) to ($0.03)
Wynn: Current Qtr up from $0.69 to $0.82. Current Year maintained at $4.02. Next Year down from $5.20 to $5.06.
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