{"id":317379,"date":"2024-04-15T17:02:14","date_gmt":"2024-04-15T22:02:14","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=317379"},"modified":"2024-04-16T09:15:22","modified_gmt":"2024-04-16T14:15:22","slug":"macau-stocks-have-positive-risk-traits-says-analyst","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/macau-stocks-have-positive-risk-traits-says-analyst\/","title":{"rendered":"Macau Stocks Less Risky Than Investors Think, Says Seaport Research"},"content":{"rendered":"

In new coverage of Macau casino stocks released Monday, Seaport Research analyst Vitaly Umansky noted the asset class remains a long-term secular growth story, and is less risky and not as volatile as many investors believe it to be.<\/p>\n

\"Macau
Chinese travelers in Macau ring in the New Year on Feb. 10, 2024. An analyst is constructive on several Macau stocks. (Image: Xinhua<\/em>)<\/figcaption><\/figure>\n

Umansky, a veteran of sell-side coverage of casino gaming equities, added that global market participants\u2019 fears about lethargy in the Chinese economy — the world\u2019s second-largest — potentially hampering Macau stocks are overblown.<\/p>\n

While nearer term uncertainty stems largely from China\u2019s economic softness and geopolitical concerns, the economic softness in China has not been a negative drag on Macau recovery and the geopolitical concerns are overemphasized,\u201d noted the analyst.<\/p><\/blockquote>\n

Owing to strong contributions from mass-market bettors<\/a>, Umansky forecast a compound annual growth rate (CAGR) of 18% from 2023 through 2025 for Macau gross gaming revenue (GGR). The analyst estimated that mass GGR will surge 19% over that period while VIP sales growth will be more muted at 7%.<\/p>\n

Other analysts believe the addition of more hotel rooms and table games at integrated resorts in the Special Administrative Region (SAR) could drive an uptick in mass market visitation.<\/p>\n

Galaxy Seen Gaining Share, MGM China Could Cede Some<\/h2>\n

Among the six Macau concessionaires, Umansky sees Galaxy Entertainment adding market share over the near term while MGM China, which is 56%-controlled by MGM Resorts International (NYSE: MGM), could lose some share.<\/p>\n

\u201cThe critical drivers for Galaxy over the next one to two years will be to take premium gaming market share while growing with the base mass recovery,\u201d he added. The company would also benefit from the opening of Phase 4 of Galaxy Macau, which would \u201csignificantly increase capacity,\u201d observed the analyst.<\/p>\n

\n

Umansky acknowledged that while MGM China has recently been an impressive gainer of market share<\/a> in Macau, those gains could be tempered as rivals bring new hotel rooms and other amenities to market.<\/p>\n<\/div>\n

\u201cWe forecast MGM [China] to lose share as other newer properties ramp up, base mass visitation increases, and other operators incorporate smart table technology, where currently MGM has a head start,\u201d he noted.<\/p>\n

Still, he initiated coverage of MGM with a \u201cbuy\u201d rating and a $56 price target, implying upside of 30.6% from Monday\u2019s close.<\/p>\n

Melco, Sands Top Macau Stock Picks<\/h2>\n

Among the other Macau stocks, Umansky said the top pick based on valuation is Melco Resorts & Entertainment (NASDAQ: MLCO)<\/a> while the best idea from a long-term risk\/reward perspective is Sands China parent Las Vegas Sands (NYSE: LVS).<\/p>\n

\n

He pointed out that Sands China could lose some market share this year, \u201cbut by 2025, we expect [Sands China’s] GGR share to rise to 27 percent, compared to 24 percent in 2019, as The Londoner is fully optimized and base mass recovery accelerates.\u201d<\/p>\n<\/div>\n

Umansky assigned a \u201cneutral\u201d rating with no price target to Wynn Resorts (NASDAQ: WYNN), noting that Wynn Macau could be hindered by Macau\u2019s still slow VIP business and lack of offerings that appeal to mass market clients.<\/p>\n","protected":false},"excerpt":{"rendered":"

In new coverage of Macau casino stocks released Monday, Seaport Research analyst Vitaly Umansky noted the asset class remains a long-term secular growth story, and is less risky and not as volatile as many investors believe it to be. Umansky, a veteran of sell-side coverage of casino gaming equities, added that global market participants\u2019 fears […]<\/p>\n","protected":false},"author":46,"featured_media":311200,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,10],"tags":[81913,81903],"acf":[],"yoast_head":"\nMacau Stocks Have Positive Risk Traits, Says Analyst<\/title>\n<meta name=\"description\" content=\"Macau Stocks Less Risky Than Investors Think, Says Seaport Research.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/macau-stocks-have-positive-risk-traits-says-analyst\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Macau Stocks Have Positive Risk Traits, Says Analyst\" \/>\n<meta property=\"og:description\" content=\"Macau Stocks Less Risky Than Investors Think, Says Seaport Research.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/macau-stocks-have-positive-risk-traits-says-analyst\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T22:02:14+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-16T14:15:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/02\/MacaoCNY-2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/macau-stocks-have-positive-risk-traits-says-analyst\/\",\"url\":\"https:\/\/www.casino.org\/news\/macau-stocks-have-positive-risk-traits-says-analyst\/\",\"name\":\"Macau Stocks Have Positive Risk Traits, Says Analyst\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/macau-stocks-have-positive-risk-traits-says-analyst\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/macau-stocks-have-positive-risk-traits-says-analyst\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/02\/MacaoCNY-2.jpg\",\"datePublished\":\"2024-04-15T22:02:14+00:00\",\"dateModified\":\"2024-04-16T14:15:22+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Macau Stocks Less Risky Than Investors Think, Says Seaport Research.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/macau-stocks-have-positive-risk-traits-says-analyst\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/macau-stocks-have-positive-risk-traits-says-analyst\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/macau-stocks-have-positive-risk-traits-says-analyst\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/02\/MacaoCNY-2.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/02\/MacaoCNY-2.jpg\",\"width\":1200,\"height\":800,\"caption\":\"Chinese travelers in Macau ring in the New Year on Feb. 10, 2024. 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