Deutsche Adds Melco Crown (MPEL) to Macau Top Picks List; Expects Stronger Mass Table Yields
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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: 12 | Down: 15 | New: 40
Rating Summary:
15 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Melco Crown (Nasdaq: MPEL) is higher on the session Monday following a bullish call by Deutsche Bank over the weekend.
The firm added Melco to its Top Picks list, along with Galaxy, removing Sands China (NYSE: LVS) in the process. Deutsche cited a need to improve mass table yields on the move.
After walking through several locations last Friday, Deutsche "found that [Melco's] City of Dreams (CoD) (53%) and Galaxy Macau (36%) have the highest % of their mass tables with min bets at HK$2,000 or above, much higher than Big 7 avg (27%)."
The focus on premium mass will drive Galaxy and Melco to the strongest EBITDA growth in FY13. Deutsche noted, "Between our June & Sept table counts, City of Dreams (CoD) added the most tables with min bets at HK$2,000 or above (from 43% to 53% of its mass tables). In fact, in 2Q, CoD already overtook Wynn Macau as the new leader in mass table yield (US$8.2k/table/day)."
Overall, Detusche notably lowered its growth outlook for Macau revs growth from 16 percent to 11 percent in 2013.
Shares of Melco are up 1.1 percent Monday while Las Vegas Sands (NYSE: LVS) -- parent of Sands China -- is lower.
The firm added Melco to its Top Picks list, along with Galaxy, removing Sands China (NYSE: LVS) in the process. Deutsche cited a need to improve mass table yields on the move.
After walking through several locations last Friday, Deutsche "found that [Melco's] City of Dreams (CoD) (53%) and Galaxy Macau (36%) have the highest % of their mass tables with min bets at HK$2,000 or above, much higher than Big 7 avg (27%)."
The focus on premium mass will drive Galaxy and Melco to the strongest EBITDA growth in FY13. Deutsche noted, "Between our June & Sept table counts, City of Dreams (CoD) added the most tables with min bets at HK$2,000 or above (from 43% to 53% of its mass tables). In fact, in 2Q, CoD already overtook Wynn Macau as the new leader in mass table yield (US$8.2k/table/day)."
Overall, Detusche notably lowered its growth outlook for Macau revs growth from 16 percent to 11 percent in 2013.
Shares of Melco are up 1.1 percent Monday while Las Vegas Sands (NYSE: LVS) -- parent of Sands China -- is lower.
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