Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>G Sachs Foresees Temporary Setback in Macau's GGR Last Qtr, Revises TPs for Casinos
Recommend 17 Positive 42 Negative 34 |
||||
|
||||
|
According to a report from Goldman Sachs, SANDS CHINA LTD (01928.HK) will disclose its results for the last quarter at the end of this month, followed by MGM CHINA (02282.HK) on February 13, WYNN MACAU (01128.HK) in early February, Melco Resorts & Entertainment (MLCO.US) in late February, GALAXY ENT (00027.HK) on February 27, and SJM HOLDINGS (00880.HK) on March 4. Considering the temporary setback in Macau's GGR last quarter and higher promotional budgets, Goldman Sachs revised its 2024-2026 EBITDA forecasts for casino stocks by -8% to +8%, with target prices adjusted by -7% to +13% (see separate table). Although the reversal in promotional budget trends may once again raise concerns about intensified market competition, the broker upheld a constructive view on Macau casino stocks and continued to favor GALAXY ENT, believing that the scheduled opening of Capella by mid-year will fortify the company's competitiveness in the premium mass market. The broker also anticipated short-term downside risks for SANDS CHINA LTD due to its sluggish GGR market share. However, with the gradual launch of its 2,400 Londoner Grand hotel suites in 1H25, the trend is expected to pick up. The broker rated SANDS CHINA LTD as Buy. Meanwhile, the broker gave SJM HOLDINGS and Melco Resorts & Entertainment a Buy rating, while rating WYNN MACAU and MGM CHINA as Neutral. Considering the relatively low market expectations, it estimated that the improvement in the GGR market share of WYNN MACAU and MGM CHINA in 4Q24 may help recent stock performance, even though the sustainability of positive factors remained in question. AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
