00027 Should I Buy

The analyst rating from Morgan Stanley is based on the expectation that Macau casino stocks will underperform the market in the short term due to several factors. They predict that Macau's 2026 Gross Gaming Revenue (GGR) will grow by only 6%, while Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) will increase by just 2%, which is below market expectations and indicates a weakening year-over-year performance. This slowdown in growth is attributed to the base effect impacting the second half of 2026 GGR and ongoing softness in the base mass segment. Consequently, Morgan Stanley has downgraded its industry view from Attractive to In-Line, anticipating a slowdown in GGR growth starting in May and negative EBITDA growth in the second and third quarters of 2026.