Macau April GRG Seen Up Low to Mid-Teens - Wells Fargo (MGM) (LVS) (WYNN) (MPEL)

Wells Fargo checks though April 6 suggest low to mid-teens Macau April revenue growth. Stocks with exposure to Macau gaming include Las Vegas Sands Corp. (NYSE: LVS), MGM (NYSE: MGM), WYNN (Nasdaq: WYNN), and Melco Crown Entertainment (Nasdaq: MPEL).

Analyst Cameron McKnight said, "Based on checks through April 6, we estimate April Macau gaming revenue growth is trending in the low to mid-teens.Our checks suggest ADR for the first six days of April is tracking in the 900-950MM MOP range, down 17-21% from March's ADR of 1,144MM MOP. Results were likely impacted by inclement weather, and we would expect weekly results for the rest of April to track closer to YTD ADR of 1,136MM MOP. Our Q2 Macau estimates are based on 15.5% yr/yr growth for April and Q2 market growth of 14.2%, down from 19.8% growth in Q1. We remain positive on the longer-term Macau secular growth story; however, 2014 could be choppy due to a potential slowdown in VIP driven by decelerating credit growth and a softer macroenvironment. LVS remains our top pick given its defensive mass exposure."

"Following softer than expected results for the first six days of April, we would expect low to mid-teens yr/yr growth for April vs. our 15.5% estimate. This assumes ADR tracks closer to YTD ADR of 1,136MM MOP for the rest of the month. If April were to finish at 13% growth, this would imply 6% yr/yr VIP and 30% mass growth," he added.

For an analyst ratings summary and ratings history on Las Vegas Sands click here. For more ratings news on Las Vegas Sands click here.

Shares of Las Vegas Sands closed at $78.31 yesterday.

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