Macau April Revenue Trending Up 7%-10%. Says Wells Fargo (LVS) (MGM) (WYNN) (MPEL)

Macau April revenue growth through April 21 is trending at 7%-10%, said Wells Fargo analyst Cameron McKnight. This is ahead of prior trend of 5-10%.

"Weekly ADR of 1,154MM MOP was up 15% from last week. Month-to-date ADR of 1,039MM MOP is now up 8% yr/yr compared to the same period last year. Our checks suggest hold was above average last week, and hold is now relatively normal for the month. Adjusting for high estimated hold of 3.06% in April 2013, we believe normalized growth is ~11-15% yr/yr. We remain positive on the longer-term Macau secular growth story; however, 2014 continues to be choppy due to a potential slowdown in VIP driven by decelerating credit growth and softer macro environment. LVS remains our top
pick given its defensive mass exposure." said McKnight.

"Expect 7-10% yr/yr growth for April vs. our prior 5-10%. Our 7% estimate assumes ADR of 1,000MM MOP next week and 700MM MOP for the final two weekdays of the month. Our 10% estimate assumes ADR of 1,100MM MOP next week and 800MM MOP for the final two weekdays of the month. April growth of 8.5% growth would imply 0% yr/yr VIP growth and 25% mass growth. Credit growth is a strong leading indicator of VIP results, in our view, and was down 9% yr/yr in Q1. In our view, Chinese credit growth is one of a few key leading indicators of Macau VIP revenue growth. Bottomline, credit growth hasn't yet bottomed, and we could see VIP growth decelerate over the next 6 months," he added.

Investors are watching Las Vegas Sands (NYSE: LVS), MGM Resorts International (NYSE: MGM), Wynn Resorts Ltd (NASDAQ: WYNN), and Melco Crown Entertainment Limited (NASDAQ: MPEL).

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 $75.73 yesterday.

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