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Nomura Boosts PTs on Gaming Stocks (LVS) (WYNN) (MGM) (PENN) (BYD)

May 13, 2013 8:01 AM EDT Send to a Friend
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Price: $76.46 --0%

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    18 Buy, 8 Hold, 0 Sell

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Nomura Securities lifted its price targets on a host of gaming stocks Monday on higher forecasts for Macau.

Analyst Harry Curtis comments, ". In this report, we raise our 2013 growth forecast for Macau to 15% from 13%, and we roll forward our target prices using 2014 estimates. This report also compares the positive supply demand outlook today for Macau with that of Las Vegas in 1990-2005. We conclude that the positive spread should lift win/table by at least 5% annually through 2014 for the US listed companies, and property margins by at least 50-100bps/year. We see challenges ahead for product sales when the Canadian and Ohio VLT demand is fulfilled by F2014."

Las Vegas Sands (NYSE: LVS) (Buy) from $62 to $67: "We continue to be bullish on LVS owing to Macau strength, in particular mass play."

Wynn (NASDAQ: WYNN) (Buy) from $147 to $155: "We recommend WYNN owing to its high FCF generation and our projected near doubling of its EBITDA in Macau in early 2016, which we think is just beginning to be discounted in its stock price."

MGM (NYSE: MGM) (Neutral) from $13.50 to $16 - "We continue to like MGM for the longer term (despite our Neutral rating) owing to expected strength in 2014, yet our pricing survey shows continued pricing pressure in 2013 post expected Q2 strength."

Penn National Gaming (NASDAQ: PENN) (Neutral) from $60 to $66 - "Given the competition that its properties faced, we have been concerned that PENN’s EBITDA could be at risk."

Boyd (NYSE: BYD) (Neutral) from $7 to $9 - "BYD looks rich to us at ~$14. While the core business has stabilized and the Locals segment could see modest upside in 2014 from the construction workers coming to town, we think BYD’s debt negates much of the equity value."

International Gaming Technology (NYSE: IGT) (Neutral) maintain at $17 - "While top-line metrics for the interactive segments appear robust, the profitability remains a mystery."

For an analyst ratings summary and ratings history on Las Vegas Sands click here. For more ratings news on Las Vegas Sands click here.

Shares of Las Vegas Sands closed at $58.22 yesterday.




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