Growth Forecast Cut for Macau Gaming Stocks but Plenty of Upside Remains

Market Vectors Gaming ETF (NYSE: BJK) could be in play today as analysts at BofA/ML cut their growth forecast on Macau casinos.

Casinos in Macau have been a huge growth and revenue driver for companies like Las Vegas Sands (NYSE: LVS) and Wynn Resorts (Nasdaq: WYNN) and are a main source of growth in gaming stocks overall. BofA/ML's new estimate is for 15 percent growth, 2 percent lower than its previous estimate.

However, it isn't all bad news from analysts today, as Karen Tang from Deutsche Bank said recently she believed the Macau casinos were only pricing in 11 percent full-year growth, so there could be a rally coming in stocks with significant exposure to Macau gaming.

Market Vectors Gaming ETF is seen as a good play to get exposure to Macau since its top holdings include several Chinese gaming companies. It also has holdings in LVS and WYNN.

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