Nomura Securities on America's Gaming & Lodging: Macau July MTD Gaming Revenues
Tweet
Share
E-mailGet Alerts LVS Hot Sheet
Price: $47.03 +2.31%
Rating Summary:
21 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
21 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
Nomura Securities on America's Gaming & Lodging: Macau July MTD Gaming Revenues
Analyst, Harry Curtis, said, "The first 15 days of July gaming revenues imply ~MOP24-24.5bn for the month, which would imply flat to 1% YoY growth. As we have been flagging for some time, July and August face tough comps, so expectations are low for these months. For the week ended July 15, average daily table win was ~HKD711mn, below last week’s HKD739m but an improvement from the ~HKD649mn in the last two weeks of June On the current run rate, July VIP could decline ~5% YoY, keeping in mind that July 2011 hold was higher than average. Hold-adjusting July 2011 VIP revenues would imply flat VIP growth. Market share details below: SJM and Las Vegas Sands (NYSE: LVS) largely unchanged, while Melco Crown (Nasdaq: MPEL) and Galaxy share shifts appear partially driven by hold."
"Longer term, we remain constructive on LVS, MGM (NYSE: MGM) and Wynn (Nasdaq: WYNN)(all Buy-rated) for several reasons: 1) positive supply/demand imbalance; 2) infrastructure improvements to Macau; 3) more optimistic China macro outlook (our China economist believes that the likelihood of a hard landing in China is low, and he expects GDP growth to rebound moderately in H2’12, helped by modest easing in 2012); and 4) valuations that look attractive (9-10% yield) on 2013E free cash flow."
Analyst, Harry Curtis, said, "The first 15 days of July gaming revenues imply ~MOP24-24.5bn for the month, which would imply flat to 1% YoY growth. As we have been flagging for some time, July and August face tough comps, so expectations are low for these months. For the week ended July 15, average daily table win was ~HKD711mn, below last week’s HKD739m but an improvement from the ~HKD649mn in the last two weeks of June On the current run rate, July VIP could decline ~5% YoY, keeping in mind that July 2011 hold was higher than average. Hold-adjusting July 2011 VIP revenues would imply flat VIP growth. Market share details below: SJM and Las Vegas Sands (NYSE: LVS) largely unchanged, while Melco Crown (Nasdaq: MPEL) and Galaxy share shifts appear partially driven by hold."
"Longer term, we remain constructive on LVS, MGM (NYSE: MGM) and Wynn (Nasdaq: WYNN)(all Buy-rated) for several reasons: 1) positive supply/demand imbalance; 2) infrastructure improvements to Macau; 3) more optimistic China macro outlook (our China economist believes that the likelihood of a hard landing in China is low, and he expects GDP growth to rebound moderately in H2’12, helped by modest easing in 2012); and 4) valuations that look attractive (9-10% yield) on 2013E free cash flow."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Viking Holdings (VIK) PT Raised to $82 at Mizuho
- DA Davidson Starts Everus (ECG) at Buy
- Advance Auto Parts (AAP) PT Lowered to $48 at DA Davidson Following 25% Selloff Post Q2 Results
Create E-mail Alert Related Categories
Analyst Comments, Retail SalesRelated Entities
NomuraSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
