Strong Macau March Gaming Results 'Pleasantly Surprising'; MGM Int'l (MGM) Favored
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Price: $44.10 +0.07%
Rating Summary:
23 Buy, 15 Hold, 4 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
23 Buy, 15 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura is out with some positive comments on Macau gaming following strong March 2013 data issued earlier this week. The firm calls MGM Resorts International (NYSE: MGM) its favorite in the segment.
Analyst Charlene Liu commented that contacts in the region we "pleasantly surprise" with the strength in the first-half of March, particularly with the softness seen during the Chinese New Year in February.
Normalization was seen in the latter part of March with the run-rate remaining strong.
Despite the final week of March delivering 886 million patacas per day of revs amid the Easter holiday, Liu sees overall strength carrying over into April and May. She commented, " This is because the base for May is meaningfully lower owing to VIP slowdown last year vs in 1Q12. Therefore, when coupled with potentially strong results for 1Q13 which will start to be reported at the end of April, the persistently strong y-y growth rate would collectively provide valuation support to the overall gaming sector."
Others to watch in the segment include Melco Crown (Nasdaq: MPEL), Wynn Resorts (Nasdaq: WYNN), and Las Vegas Sands (NYSE: LVS).
Analyst Charlene Liu commented that contacts in the region we "pleasantly surprise" with the strength in the first-half of March, particularly with the softness seen during the Chinese New Year in February.
Normalization was seen in the latter part of March with the run-rate remaining strong.
Despite the final week of March delivering 886 million patacas per day of revs amid the Easter holiday, Liu sees overall strength carrying over into April and May. She commented, " This is because the base for May is meaningfully lower owing to VIP slowdown last year vs in 1Q12. Therefore, when coupled with potentially strong results for 1Q13 which will start to be reported at the end of April, the persistently strong y-y growth rate would collectively provide valuation support to the overall gaming sector."
Others to watch in the segment include Melco Crown (Nasdaq: MPEL), Wynn Resorts (Nasdaq: WYNN), and Las Vegas Sands (NYSE: LVS).
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