Nomura Securities Gaming Takeaways: Mgmt Meetings with MGM, LVS, WYNN and IGT - Uptrends in Macau and Las Vegas Continue
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Price: $99.60 --0%
Rating Summary:
35 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
35 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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Nomura Securities Gaming Takeaways: Mgmt Meetings with MGM, LVS, WYNN and IGT - Uptrends in Macau and Las Vegas Continue
Analyst Harry C. Curtis, said, "Macau VIP continues to grow while turnover and credit collection remain normal. Operators are not seeing any signs of a reversal. We believe junket demand continues to outpace supply – both Wynn (Nasdaq: WYNN) and MGM (NYSE: MGM) added smaller junkets in October while Las Vegas Sands (NYSE: LVS) added 2 of the Top 10 junkets in November and indicated they have 18 junkets interested in the 9 junket rooms at Sands Cotai Central."
LVS: “Wetting its Beak” – Reiterate Buy and $62 PT: The uptrend in LVS’s estimates should continue. Sources of upside include: 1) new junkets at the Plaza casino at Four Seasons, which are already showing signs of growing demand; 2) change out of top floor at Sands Macao to junket VIP room; 3) Sands Cotai Central estimate could be conservative as junket demand outstrips supply; and 4) Singapore VIP and mass gaming could see upside from improved VIP database and infrastructure openings adjacent to the property.
MGM: Pricing Moves Steadily Upwards – Reiterate Buy and $20 PT: Sources of upside: 1) MGM looking to increase direct VIP volume in Macau back to historical range of 18-20% of total roll volume from current 11-12% when its direct VIP area reopens in December; 2) reconfigured mass floor in Macau performs better than expected (Diamond Lounge opened in late Q3); and 3) our 7% ADR growth in 2012 with 65% flow thru in Las Vegas could be conservative.
WYNN: Focus on the Cash – Reiterate Buy and $175 PT: The stock fell from September peak of $158 when fears of a China slowdown lead investors to fear a VIP slowdown. However, even assuming a 20% YOY decline in 2012 VIP roll and taking Macau multiple to 11x from 15x, the floor in the stock should be $114, in our view.
Int'l Gaming Tech (NYSE: IGT): Benign Environment Outlook – Reiterate Neutral and $20 PT: No change to N.A. replacement cycle outlook. Sources of upside include Int’l and IL VLTs, but large share base makes it hard to move the needle.
Analyst Harry C. Curtis, said, "Macau VIP continues to grow while turnover and credit collection remain normal. Operators are not seeing any signs of a reversal. We believe junket demand continues to outpace supply – both Wynn (Nasdaq: WYNN) and MGM (NYSE: MGM) added smaller junkets in October while Las Vegas Sands (NYSE: LVS) added 2 of the Top 10 junkets in November and indicated they have 18 junkets interested in the 9 junket rooms at Sands Cotai Central."
LVS: “Wetting its Beak” – Reiterate Buy and $62 PT: The uptrend in LVS’s estimates should continue. Sources of upside include: 1) new junkets at the Plaza casino at Four Seasons, which are already showing signs of growing demand; 2) change out of top floor at Sands Macao to junket VIP room; 3) Sands Cotai Central estimate could be conservative as junket demand outstrips supply; and 4) Singapore VIP and mass gaming could see upside from improved VIP database and infrastructure openings adjacent to the property.
MGM: Pricing Moves Steadily Upwards – Reiterate Buy and $20 PT: Sources of upside: 1) MGM looking to increase direct VIP volume in Macau back to historical range of 18-20% of total roll volume from current 11-12% when its direct VIP area reopens in December; 2) reconfigured mass floor in Macau performs better than expected (Diamond Lounge opened in late Q3); and 3) our 7% ADR growth in 2012 with 65% flow thru in Las Vegas could be conservative.
WYNN: Focus on the Cash – Reiterate Buy and $175 PT: The stock fell from September peak of $158 when fears of a China slowdown lead investors to fear a VIP slowdown. However, even assuming a 20% YOY decline in 2012 VIP roll and taking Macau multiple to 11x from 15x, the floor in the stock should be $114, in our view.
Int'l Gaming Tech (NYSE: IGT): Benign Environment Outlook – Reiterate Neutral and $20 PT: No change to N.A. replacement cycle outlook. Sources of upside include Int’l and IL VLTs, but large share base makes it hard to move the needle.
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