Brean Capital Gets Bullish on Macau, Starts Four Casino Stocks at Buy (WYNN) (LVS) (MGM) (MPEL)

Brean Capital initiated coverage on four casino stocks with Buy ratings due to expectations for recovery in Macau in the second half of 2015.

Wynn Resorts (NASDAQ: WYNN) with a Buy rating and a price target of $174. Las Vegas Sands (NYSE: LVS) was initiated at Buy with a price target of $65. MGM Resorts (NYSE: MGM) was initiated at Buy with a price target of $27. And Melco Crown (NASDAQ: MPEL) was initiated at Buy with a price target of $31.

"Clearly, Macau GGR has suffered with China Premier Xi Jinping’s anti-corruption crackdown. However, the declines in 2H14 and 1Q15 were/are being exaggerated by very tough y/y comps, combined with a significant shortage of rooms to handle an increasing amount of mass market visitation (+7.5% y/y in 2014)," said analyst Bryan Maher.

"We believe the issues in Macau should start to dissipate in 2H15 as new properties begin opening (Galaxy expansion in 2Q15 and Melco’s Studio City in 3Q15). These openings will likely stir increased buzz in the market and drive incremental visitation to Macau, benefiting most, if not all, operators. We believe we are more bullish than the consensus for full-year 2015 GGR growth, which our base case pegs at -11% y/y," added the analyst.

For an analyst ratings summary and ratings history on Wynn Resorts click here. For more ratings news on Wynn Resorts click here.

Shares of Wynn Resorts closed at $124.58 yesterday.

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