{"id":85380,"date":"2024-10-03T20:58:14","date_gmt":"2024-10-03T20:58:14","guid":{"rendered":"https:\/\/neclink.com\/index.php\/2024\/10\/03\/macau-casino-stocks-have-more-room-to-rally-says-analyst\/"},"modified":"2024-10-03T20:58:14","modified_gmt":"2024-10-03T20:58:14","slug":"macau-casino-stocks-have-more-room-to-rally-says-analyst","status":"publish","type":"post","link":"https:\/\/neclink.com\/index.php\/2024\/10\/03\/macau-casino-stocks-have-more-room-to-rally-says-analyst\/","title":{"rendered":"Macau Casino Stocks Have More Room to Rally, Says Analyst"},"content":{"rendered":"


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\n Posted on: October 3, 2024, 03:10h.\u00a0\n <\/p>\n

\n Last updated on: October 3, 2024, 03:10h.\n <\/p>\n

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Macau casino stocks surged last week with the help of monetary easing by the People\u2019s Bank of China (PBOC) and fresh stimulus measures, but one analyst sees more upside ahead for the group.<\/p>\n

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Sands China\u2019s Venetian Macau. Las Vegas Sands is one of the Macau casino stocks preferred by CBRE. (Image: Luxury Lifestyle Magazine<\/em>)<\/figcaption><\/figure>\n

In a new report to clients, CBRE Equity Research analyst John DeCree said that while profit-taking on the back of last week\u2019s rally could be tempting for some investors, now could be the time to remain engaged with Macau gaming equities<\/a> because the group is attractively valued and could generate more upside.<\/p>\n

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Even with the recent rally in the shares, Macau gaming equities have underperformed the S&P500 over the past year. Valuations and forward estimates for the sector remain undemanding, suggesting more upside ahead,\u201d wrote the analyst.<\/p>\n<\/blockquote>\n

DeCree added that even with last week\u2019s big gains, Macau casino stocks are value plays, noting the group trades at 9.2x enterprise value to earnings before interest, taxes, depreciation, and amortization (EV\/EBITDA). That\u2019s well below the 11.2x the group traded at in 2019. He said consensus implies 7.3% gross gaming revenue (GGR) growth in 2025 in Macau, but that could prove light if stimulus measures are effective.<\/strong><\/p>\n

LVS, Wynn Preferred Among Macau Casino Stocks<\/h2>\n

In his report, DeCree extolled a preference for Sands China parent Las Vegas Sands (NYSE: LVS). He said that the operator has the biggest room inventory<\/a> in Macau and a strong retail presence, which positions it to benefit from an uptick in visitation to the gaming hub.<\/p>\n

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Sands will see easier comparisons next year as the Londoner\u2019s full stock of rooms becomes accessible. Separately, the stock was one of the consumer discretionary names appearing on a Wells Fargo list of names trading at steep discounts with the potential to eliminate those valuation gaps.<\/p>\n<\/div>\n

DeCree also sees value in Wynn Resorts (NASDAQ: WYNN), the parent of Wynn Macau.<\/p>\n

\u201cWhile we prefer Las Vegas Sands and Wynn, the new stimulus should unlock technical and fundamental value across the entire Macau gaming group,\u201d observed the analyst.<\/p>\n

More Stimulus Could Lift Macau Casino Stocks<\/h2>\n

Some market observers believe the easing unveiled last week by the PBOC and Beijing\u2019s new stimulus measures<\/a> are just a start because the Chinese economy needs more. Direct stimulus to Chinese citizens could be a boon for Macau casino stocks because it could encourage more discretionary spending.<\/p>\n

Nigel Green of\u00a0deVere Group<\/strong><\/a>\u00a0said that\u2019s the road Beijing needs to take because the Chinese economy is still in a fragile place.<\/p>\n

\u201cBeijing\u2019s efforts so far have largely focused on monetary policies, but fiscal stimulus\u2014such as increased government spending on infrastructure projects and incentives for consumer spending \u2014 could provide a much-needed boost to economic demand,\u201d he said. \u201cInvestors, both domestic and international, are watching closely to see whether Beijing will take bolder steps to solidify its economic foundation. If this happens, China will emerge stronger than ever.\u201d<\/strong><\/p>\n<\/div>\n


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Posted on: October 3, 2024, 03:10h.\u00a0 Last updated on: October 3, 2024, 03:10h. Macau casino stocks surged last week with the help of monetary easing<\/p>\n","protected":false},"author":1,"featured_media":85381,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[158],"tags":[],"class_list":["post-85380","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gambling"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/posts\/85380","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/comments?post=85380"}],"version-history":[{"count":0,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/posts\/85380\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/media\/85381"}],"wp:attachment":[{"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/media?parent=85380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/categories?post=85380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/tags?post=85380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}