Barclays on Gaming Stocks: Cutting Estimates and Price Targets on LVS, MGM and WYNN

June 18, 2012 2:08 PM EDT Send to a Friend
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Barclays on Gaming Stocks: Cutting Estimates and Price Targets on LVS, MGM and WYNN

Analyst, Felicia R. Hendrix, met with management of several firms including Las Vegas Sands (NYSE: LVS), MGM (NYSE: MGM), and Melco Crown (Nasdaq: MPEL) among others. Hendrix has decided to cut estimates and price targets on these stocks to reflect the slowdown being seen in Macau and Singapore.

Hendrix mentioned that many members of management teams were positive about their positions and growth prospects, however, she felt that current Barclays estimates were too high and gaming growth is probably slower than her estimates implied.

For Overweight-rated Las Vegas Sands (NYSE: LVS), price target cut from $62 to $54, FY12 EPS estimate raised from $2.59 to $2.62, but FY13 cut from $3.18 to $2.98.

For Overweight-rated MGM (NYSE: MGM), price target cut from $18 to $17, FY12 EPS estimate raised from (0.79) to (0.45), but FY13 cut from $0.09 to $0.07.

For Overweight rated Wynn Resorts (Nasdaq: WYNN), price target is lowered from $176 to $166, FY12 EPS estimate cut from $5.91 to $5.73 and FY13 cut from $7.84 to $7.17.

In conclusion, Hendrix continues to favor MGM over LVS and WYNN in the near-term, saying MGM is more levered to the Las Vegas market, which is expected to have stronger fundamentals vs. Asia in the near-term. Second on the list is LVS and last is WYNN.




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