Melco Crown Entertainment (MPEL): Good Execution Against High Expectations - Wells Fargo

Melco Crown Entertainment (NASDAQ: MPEL)
Wells Fargo anlayst, Cameron McNight, reiterated his Outperform rating on shares of Melco Crown Enter. (NASDAQ: MPEL) and raised the valuation range to $16-$18 from $12-$14 after Macau property EBITDA of $244mm was 10% ahead of the Street at $222mm. Normalized for hold, results were 13% ahead of expectations. Studio City drove the beat, with $53mm EBITDA vs consensus of $30-35mm.

The analyst stated "We remain neutral on MPEL and on Macau generally, given (1) the year-to-date rally in the group, (2) our expectation of muted longer-term market growth, (3) uncertainty over whether recent growth is a recovery or just the second derivative of (i) the Chinese real estate boom and (ii) capital flight, and (4) regulatory and macro-economic risks."

For an analyst ratings summary and ratings history on Melco Crown Enter. click here. For more ratings news on Melco Crown Enter. click here.

Shares of Melco Crown Enter. closed at $17.67 yesterday.

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