Morgan Stanley Analyst: Casino Operators Buoyed In Vegas, Still Sunk in Macau

Loading...
Loading...

Relatively strong revenue growth in Las Vegas might help casino stocks with big stakes there fend off weak performance in the far larger Macau market, an analyst said Monday.

Morgan Stanley's Thomas Allen, who maintains an "attractive" rating on the industry, said January's 10 percent growth in gambling revenue constituted Las Vegas' best month since 2007.

But that contrasted with a 56 percent decline in Macau revenue during the recent Chinese New Year holiday.

MGM Resorts International MGM, with a big foot in both markets, may see its Las Vegas performance help offset obvious risk in Macau, Allen said.

Wynn Resorts, Limited WYNN, which also operates in both markets, "could get pressured" by Macau market trends, according to Allen, who maintained an Overweight rating.

Boyd Gaming Corporation BYD and Penn National Gaming, Inc. PENN are likely to benefit from a regional U.S. recovery in gaming, as well as benign Las Vegas weather, said Allen, who maintained an Underweight rating on Penn National.

"Large cap operators appear more enthusiastic taking about their U.S. development pipeline than about Macau," Allen said.

Wynn expects to start construction of a Boston casino later this year and MGM's drawing board features a project in Washington, D.C.

"If only Massachusetts and Washington could be as big as Macau," Allen said.

Loading...
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorReiterationAnalyst RatingsMorgan StanleyThomas Allen
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...