Susquehanna Raises Price Targets On Casino Stocks When it comes to Las Vegas, Rothman is forecasting a strong Q3 Convention season marked by 8 percent RevPAR growth and single-digit gaming revenue growth on the quarter. For investors bullish on Vegas, Rothman recommends MGM Resorts International (NYSE: MGM). In Macau, Susquehanna is materially raising its previous guidance for the rest of 2016. The firm has upped its Q3/Q4 Macau gaming revenue growth projections from -7.3/-5.7 percent to +0.3/+2.7 percent. For investors bullish on Macau, Rothman recommends Las Vegas Sands Corp. (NYSE: LVS). Susquehanna maintains Positive ratings on Sands and MGM and a Neutral rating on Wynn Resorts, Limited (NASDAQ: WYNN). However, the firm has raised its price targets on the three stocks to $63, $30 and $105, respectively. http://finance.yahoo.com/news/susquehanna-raises-price-targets-casino-201328178.html
Now I see why things are a rocking in Macau Macau On The Cusp Of Mass Recovery, Says Long-Time Bear Deutsche Deutsche Bank‘s Karen Tang has been a Macau skeptic for as long as this blogger can remember. But she changed her mind today, upgrading Sands China (1928.Hong Kong), MGM China (2282.Hong Kong) and Melco Crown (MPEL) to buy. We are on the cusp of a mass market recovery, and the previous VIP players are now coming back as premium mass gamers. Tang wrote: Over the past 2 weeks, we’ve had extensive interviews with a dozen of casino service staff & premium mass hosts. We learnt that gaming spend per visitor has started to rise, and VIPs are returning as premium mass players. We conclude that Macau is now at the start of a mass-led GGR recovery. Importantly, both base mass and premium mass are growing again. We forecast that Mass GGR growth will accelerate from 4% yoy in 2Q16 to 10% yoy in 2H16 and to 12% yoy in 2017. As mass has higher margins, we lift our sector EBITDA by 10% to US$6.6bn for 2017. We prefer mass-focused operators, and upgrade Sands, MGM China & MPEL from Hold to Buy. Over the past 2 yrs, over 100 small junket operators closed their VIP rooms. This left hundreds of agents and service staff jobless. Some were recruited by casinos as premium mass marketing costs. As cash access via UnionPay remains easy, these new hosts are helping VIPs convert into premium mass. Our proprietary table count confirms the return of premium mass. Proportion of baccarat tables with over HK$2,000 min bet rose from 29% of the mass floor in Dec to 36% by July, with min bet rising prominently since July. We believe this player conversion can sustain premium mass growth for the next 1-2 years. Each of the mass market player is spending more. In the second quarter, Macau’s mass gross gaming revenue rose 4%, even though the total number of visitors fell 0.5%. This morning, the Macau stocks rose strongly, as Beijing clears Chinese insurance to come buy Hong Kong stocks through the Connect. Wynn Macau (1128.Hong Kong) soared 4.9%, MGM China rose 4.2%, Galaxy Entertainment (0027.Hong Kong) gained 3.6%, Sands China rose 3.5%, SJM Holdings (880.Hong Kong) was up 4.4%. http://blogs.barrons.com/asiastocks...time-bear-deutsche/?mod=yahoobarrons&ru=yahoo
The Big 4 iare up tonight in Macau tonight. If futures hold overnight it could be a good day for them
TTT here has been awaring us to gaming stocks for months. Now IBD comes out with an article. http://www.investors.com/news/casino-stocks-a-good-bet-in-a-dicey-market/ mentions: LVS, WYNN, MGM, MPEL, IGT
Good Article Marcy...It was just a matter of time til they came off the bottom in Macau and best to get in before the crowd. My only concern is that don't over build beyond the demand. Speaking of that they are rock-in again in Macau
