JPMorgan (NYSE:JPM) raised its estimates on Wynn Resorts (WYNN), Las Vegas Sands (LVS) and Melco Crown Entertainment (MPEL) today.
According to JPMorgan analyst Joseph Greff, Wynn and Las Vegas Sands should benefit from expected growth in Macau and the Las Vegas Strip. Gross gaming revenue in Macau has risen by 47.7 percent over last year in February.
For Melco Crown Entertainment, Greff noted that it is trading at a lower valuation than its peers.
Greff said, “We think that mass, slot, and VIP volumes for Marina Bay Sands’ (MBS) 1Q11 showed nice sequential improvements versus 4Q10 levels, something that should improve current investor sentiment for LVS, given that was an issue of concern for investors in the 4Q10 when VIP volumes were down sequentially. We believe that February was an all-time record for volumes and EBITDA.”
“We think Macau GGR growth will remain robust over the next two months given five weekends in April and the seasonally strong Golden Week holiday in May. Additionally, in the near term, we believe the potential easing of foreign labor restrictions in Macau over the next two months (in conjunction with Galaxy Cotai opening on May 15), could serve as a positive catalyst for all Macau operators, and more specifically LVS as it could speed up construction on Sites 5 & 6.”
He boosted his December 2011 price target on WYNN from $140 to $150, and on LVS from $58 to $56.
Wynn Resorts was trading at $135.94, gaining $1.64, or 1.22 percent, as of 12:55 PM EDT. Las Vegas Sands was trading at $45.22, up $0.36, or 0.80 percent. Melco was trading at $8.50, rising $0.26, or 3.16 percent.
Thursday, April 7, 2011
JPMorgan (JPM) Raises (WYNN) (LVS) (MPEL) Estimates
Labels:
JP Morgan,
Las Vegas,
Las Vegas Sands,
Macau,
Melco Crown,
Wynn Resorts
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