Nomura Securities on Macau Gaming: Upward Revision to 2011 and 2012
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Price: $45.04 +1.81%
Rating Summary:
21 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 3
Rating Summary:
21 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 3
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Nomura Securities on Macau Gaming by Harry Curtis
Curtis said, "Upward revision to 2011 and 2012 gaming market estimates. We are raising our 2011 Macau market estimate to +40%, from 31%, driven primarily by VIP, and that for 2012 +20%, up from the prior +18% estimate, with incremental growth coming from both VIP and mass. These estimates were coordinated with our Hong Kong Gaming Research team. We reiterate our Buy on Las Vegas Sands (NYSE: LVS) (PT $58) and MGM (NYSE: MGM) (PT $20). LVS has declined ~16% in the past week (vs S&P down 11%) on the US and Europe macro overhang, but LVS is among the more insulated names under our coverage as it generates over 80% of EBITDA from Macau and Singapore. MGM has declined ~27% in the past week but MGM China is ~50% of MGM’s equity value. At current levels, we find the stock attractive for long-term holders."
Curtis said, "Upward revision to 2011 and 2012 gaming market estimates. We are raising our 2011 Macau market estimate to +40%, from 31%, driven primarily by VIP, and that for 2012 +20%, up from the prior +18% estimate, with incremental growth coming from both VIP and mass. These estimates were coordinated with our Hong Kong Gaming Research team. We reiterate our Buy on Las Vegas Sands (NYSE: LVS) (PT $58) and MGM (NYSE: MGM) (PT $20). LVS has declined ~16% in the past week (vs S&P down 11%) on the US and Europe macro overhang, but LVS is among the more insulated names under our coverage as it generates over 80% of EBITDA from Macau and Singapore. MGM has declined ~27% in the past week but MGM China is ~50% of MGM’s equity value. At current levels, we find the stock attractive for long-term holders."
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