Nomura Securities Q4 Gaming Preview: Expect Growth in All Regions
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Price: $43.74 +1.32%
Rating Summary:
23 Buy, 15 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
23 Buy, 15 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Nomura Securities Q4 Gaming Preview: Expect Growth in All Regions
Analyst, Harry Curtis, said, "Expect growth in all regions. Stocks have outperformed YTD. Buy if profit taking on 4Q calls:
MGM (NYSE: MGM) Estimates: Overall, we expect MGM to report net EBITDA of $453M vs. cons. at $438M. MGM, our favorite high-beta stock pick for 2012, has increased 26% YTD and ~ 32% since 12/23 (vs. the S&P 500 up 4.5% and 3.9%). We continue to recommend the stock given its highly leveraged RevPAR recovery in Las Vegas. In the near term, though, given the stock’s outperformance, we expect either a pause or pullback on the earnings report.
Las Vegas Sands (NYSE: LVS) Estimates: Consensus expects LVS to report 4Q11 net EBITDA of $883M vs. our $921M estimate. Despite worries about a seq. decline in VIP roll at MBS, LVS’s stock price has increased ~12% ytd as investor fears of a slowdown in Macau have faded. We believe the stock has upside to at least $62 driven by a well-executed opening and quarterly EBITDA growth at MBS. A dividend declaration should also attract a new segment of investors.
Wynn Resorts (Nasdaq: WYNN) Estimates: Our total EBITDA estimate of $403M is largely in line with the Street at $395M. WYNN has been the industry laggard ytd, +7%, as investors have rotated into LVS (unit growth) and MGM (greater leverage to Las Vegas). With either Macau land gazetting or a credible bid for Japan the stock could reach our $144 target.
Analyst, Harry Curtis, said, "Expect growth in all regions. Stocks have outperformed YTD. Buy if profit taking on 4Q calls:
MGM (NYSE: MGM) Estimates: Overall, we expect MGM to report net EBITDA of $453M vs. cons. at $438M. MGM, our favorite high-beta stock pick for 2012, has increased 26% YTD and ~ 32% since 12/23 (vs. the S&P 500 up 4.5% and 3.9%). We continue to recommend the stock given its highly leveraged RevPAR recovery in Las Vegas. In the near term, though, given the stock’s outperformance, we expect either a pause or pullback on the earnings report.
Las Vegas Sands (NYSE: LVS) Estimates: Consensus expects LVS to report 4Q11 net EBITDA of $883M vs. our $921M estimate. Despite worries about a seq. decline in VIP roll at MBS, LVS’s stock price has increased ~12% ytd as investor fears of a slowdown in Macau have faded. We believe the stock has upside to at least $62 driven by a well-executed opening and quarterly EBITDA growth at MBS. A dividend declaration should also attract a new segment of investors.
Wynn Resorts (Nasdaq: WYNN) Estimates: Our total EBITDA estimate of $403M is largely in line with the Street at $395M. WYNN has been the industry laggard ytd, +7%, as investors have rotated into LVS (unit growth) and MGM (greater leverage to Las Vegas). With either Macau land gazetting or a credible bid for Japan the stock could reach our $144 target.
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