Nomura Securities on Gaming and Lodging: Macau Market Update; Stocks Discount Slower Growth
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Price: $58.64 +1.17%
Rating Summary:
18 Buy, 7 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
18 Buy, 7 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade LVS Now!
Nomura Securities on Gaming and Lodging: Macau market update; stocks discount slower growth.
Analyst, Harry Curtis, said, "We have waited for detailed May results in Macau to assess how the recent slowing growth rate is likely to impact estimates through '13. Our market growth forecasts are declining from ~19% to ~15% in 2012 and from ~16% to ~11% in 2013. We note the supply growth for 2013 is 3%-4%, so there should be strong pricing power for 18+ months. Since the stocks have given up most of their YTD outperformance, they more than discount all but a hard landing in China, which we view as less likely. We see avg. upside of 40% in LVS, WYNN, and MGM over the next 12 months.
Las Vegas Sands (NYSE: LVS): PT from $62 to $58
MGM (NYSE: MGM): No meaningful change to $16 PT
Wynn (Nasdaq: WYNN): PT from $175 to $167
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Analyst, Harry Curtis, said, "We have waited for detailed May results in Macau to assess how the recent slowing growth rate is likely to impact estimates through '13. Our market growth forecasts are declining from ~19% to ~15% in 2012 and from ~16% to ~11% in 2013. We note the supply growth for 2013 is 3%-4%, so there should be strong pricing power for 18+ months. Since the stocks have given up most of their YTD outperformance, they more than discount all but a hard landing in China, which we view as less likely. We see avg. upside of 40% in LVS, WYNN, and MGM over the next 12 months.
Las Vegas Sands (NYSE: LVS): PT from $62 to $58
MGM (NYSE: MGM): No meaningful change to $16 PT
Wynn (Nasdaq: WYNN): PT from $175 to $167
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