Morgan Stanley analysts Thomas Allen and Praveen Choudhary lowered their expectations for Macau, stating they now expects gross gaming revenue to decline 3% in 2019 and grow 3% in 2020. The analysts previously forecast a 1% decline in GGR for 2019 and an 8% increase in 2020. Allen lowered his price target on Las Vegas Sands (LVS) to $66 from $68, cut his target on MGM Resorts (MGM) to $31 from $32 and reduced his Wynn Resorts (WYNN) target to $115 from $129, explaining that the Wynn cut is most pronounced since it is most exposed to Macau and to the weak high-end there. He maintains an Overweight rating on Las Vegas Sands, which he views as the most defensive and with potential Japan upside. Allen has Equal Weight ratings on MGM and Wynn shares.
The major averages spent most of the day little changed as investors weighed the latest batch of earnings reports against trade and Brexit related headlines. United Airlines (UAL)... To see the rest of the story go to thefly.com. See Story Here
Stocks continue in a holding pattern as investors weigh the latest batch of earnings reports against trade and Brexit related headlines. United Airlines (UAL)... To see the rest of the story go to thefly.com. See Story Here
Morgan Stanley analyst Thomas Allen said MGM Resorts' (MGM) sale-leaseback of Bellagio in a deal with Blackstone (BX) and its sale of Circus-Circus to an affiliate of Treasure Island owner Phil Ruffin came at higher multiples than he expected, prompting him to raise his price target on MGM shares to $32 from $31. However, Allen keeps an Equal Weight rating on MGM shares, citing his concerns around Las Vegas risk in Q4 and questions about the achievability of its 2020 targets.