Wells Fargo Says Buy the Dip in Melco Crown (MPEL) Shares
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Price: $18.97 +0.42%
Rating Summary:
15 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
15 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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With shares of Melco Crown Entertainment (Nasdaq: MPEL) down as much as 10 percent earlier, Wells Fargo's Cameron McKnight issued a research note reassuring investors he continues to be a buyer of the stock.
McKnight attributed the weakness "to an article published in Macau Business suggesting that cornerstone (34%) of Crown Ltd and MPEL Co-Chairman James Packer will face a 'priority and suitability test' by 'an Australian gaming regulator.'" He argued this "is not incremental news, and there is no negative substance here." The Wells Fargo analyst believes such a measure is "routine, and driven by its potential takeover of new casino assets in Australia." McKnight pointed out CWN and James Packer "are already licenses in and own two major casinos in the Australian states of Victoria and Western Australia."
Wells Fargo maintains an Outperform rating on shares of Melco Crown.
Shares have bounced following the initial plunge, however remain sharply lower. The stock last traded at $11.65, down nearly 4 percent from Wednesday's close.
McKnight attributed the weakness "to an article published in Macau Business suggesting that cornerstone (34%) of Crown Ltd and MPEL Co-Chairman James Packer will face a 'priority and suitability test' by 'an Australian gaming regulator.'" He argued this "is not incremental news, and there is no negative substance here." The Wells Fargo analyst believes such a measure is "routine, and driven by its potential takeover of new casino assets in Australia." McKnight pointed out CWN and James Packer "are already licenses in and own two major casinos in the Australian states of Victoria and Western Australia."
Wells Fargo maintains an Outperform rating on shares of Melco Crown.
Shares have bounced following the initial plunge, however remain sharply lower. The stock last traded at $11.65, down nearly 4 percent from Wednesday's close.
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