JPMorgan (JPM) Raises (WYNN) (LVS) (MPEL) Estimates

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.

Las Vegas Sands (LVS), Wynn (WYNN), MGM Resorts (MGM), Boyd (BYD) Drop on Weak Las Vegas Market

Shares of Las Vegas Sands (NYSE:LVS), Wynn (NASDAQ:WYNN), MGM Resorts (NYSE:MGM), Boyd (NYSE:BYD) were all under pressure Thursday as new gambling revenue in Las Vegas dropped in January.

Revenue for Las Vegas Strip fell to $482.7 million, a decline of 2.5 percent. Across the state of Nevada gambling revenue dropped by $877.4 million.

JPMorgan (NYSE:JPM) analyst Joseph Greff said, "We view these Strip results as disappointing, even adjusting for hold. While one can't view from aggregate results, we believe there is a big disparity in performance between relatively better performing higher-end properties and underperforming mid-tier and lower price point Strip properties."

Wells Fargo analyst Carol Santarelli's take was this: "Much was made of the strong start to the year with visitor and convention volumes up significantly in January on the Strip. Add in the Cosmopolitan opening in December and a fairly easy comparison, despite having one less weekend day in January 2011, and we believe expectations for January results on the Strip certainly called for year-over-year growth."

Boyd Gaming was trading at $9.60, down $0.28, or 2.83 percent, as of 12:16 PM EST. MGM Resorts was trading at $13.04, falling $0.48, or 3.55 percent. Wynn Resorts was at $124.29, down $3.80, or 2.97 percent. Las Vegas Sands was at $40.67, down $1.54, or 3.65 percent.

MGM Resorts (NYSE:MGM) Falters on Weak Las Vegas Results

While some signals from the gaming industry in Las Vegas pointed to it being stronger, that appears to not be the case, at least for MGM Resorts (NYSE:MGM), which had disappointing results in the city.

That's important to MGM, because the 10 resorts they have in the city account for the majority of the profits the company generates.

Trying to play down the weak Las Vegas results, CEO Jim Murren said in a statement, "We are encouraged in early 2011 by the level of business activity we are seeing. Our forward booking pace is currently ahead of last year, led by a stronger convention mix which we believe will position our company to have a better year than last."

Revenue in the quarter fell to $309.7 million, a drop of 4.5 percent from last year in the same quarter.

Adjusted earnings were a net loss of $139.2 million, or 29 cents a share, an improvement over the $433.9 million, or 98 cents a share MGM lost last year in the fourth quarter.

Net revenue increased from $1.45 billion to $1.47 billion.

MGM was trading at $15.05, down $0.49, or 3.15 percent, as of 12:22 PM EST.