UBS Lowers Price Targets for Casinos, Upgrades SANDS CHINA LTD and MELCO INT'L DEV to Buy, Keeps 5% GGR Growth Prediction for This Year
Positive Outlook on Macau's Gaming Industry: UBS has a favorable view of Macau's gaming sector, citing strong year-to-date demand that supports sustainable growth in gross gaming revenue (GGR) for 2023.
GGR Growth Projections: The broker forecasts a 5% year-over-year GGR growth for 2026, with an anticipated increase of approximately 8% in the first half and a slowdown to about 3% in the second half.
Target Price Adjustments: UBS has lowered target prices for Macau casinos while upgrading SANDS CHINA LTD and MELCO INT'L DEV from Neutral to Buy, with new target prices set at $20.4 and $5.3, respectively.
Top Picks in the Sector: UBS identifies Melco Resorts & Entertainment and SANDS CHINA LTD as top picks, with Melco's target price set at US$9.4 and rated as a Buy.
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<Study>UBS Casino Ratings and Target Prices (Table)
Stock Ratings and Target Prices: Various companies in the gaming sector have received updated ratings and target prices, with Melco Resorts rated as "Buy" and Sands China downgraded from "Neutral" to "Buy".
Short Selling Data: Significant short selling activity is noted across several companies, with Sands China experiencing the highest short selling ratio at 52.992%.
Market Performance: Most companies listed, including Galaxy Entertainment and MGM China, have seen declines in their stock prices, with Galaxy down by 4.522%.
Analyst Recommendations: CLSA has highlighted Galaxy Entertainment and MGM China as top picks following a positive report on Macau's gaming revenue for February.
UBS Lowers Price Targets for Casinos, Upgrades SANDS CHINA LTD and MELCO INT'L DEV to Buy, Keeps 5% GGR Growth Prediction for This Year
Positive Outlook on Macau's Gaming Industry: UBS has a favorable view of Macau's gaming sector, citing strong year-to-date demand that supports sustainable growth in gross gaming revenue (GGR) for 2023.
GGR Growth Projections: The broker forecasts a 5% year-over-year GGR growth for 2026, with an anticipated increase of approximately 8% in the first half and a slowdown to about 3% in the second half.
Target Price Adjustments: UBS has lowered target prices for Macau casinos while upgrading SANDS CHINA LTD and MELCO INT'L DEV from Neutral to Buy, with new target prices set at $20.4 and $5.3, respectively.
Top Picks in the Sector: UBS identifies Melco Resorts & Entertainment and SANDS CHINA LTD as top picks, with Melco's target price set at US$9.4 and rated as a Buy.
HSI Closes Down 384 Points on Futures Settlement Day; Declines in Tech, Auto, Consumer, and Pharma Sectors
Hong Kong Stock Market Performance: The Hong Kong stock market opened higher but closed lower, with the HSI down 384 points (1.4%) at 26,381, and total market turnover at HKD259.277 billion.
CKI Holdings' Stock Surge: A consortium led by CKI Holdings sold UKPN, resulting in a 4.5% increase in its stock price, while CKH Holdings and Power Assets also saw significant gains.
Tech Sector Declines: Alibaba's stock fell 3.6% after a report predicted weak quarterly profits, while other tech stocks like Tencent and Meituan also experienced declines.
Pharmaceuticals and Consumer Stocks Drop: Various pharmaceutical and consumer stocks saw significant losses, with declines ranging from 3.3% to 9.2% across multiple companies.
JPM Adjusts February GGR Projections, Names GALAXY ENT as Preferred Choice
Macau's GGR Performance: Macau's gross gaming revenue (GGR) for the first 22 days of February reached MOP14.3 billion, with a daily average of MOP650 million, falling short of JPMorgan's expectations during the Lunar New Year period.
Forecast Adjustments: Due to mixed performance, JPMorgan revised its February GGR forecast to a flat to 2% increase year-on-year, down from a previous estimate of 2-5% growth, while maintaining a 12-13% growth expectation for the first two months of 2026.
Casino Stock Preferences: JPMorgan updated its preference order for Macau casino stocks, ranking Galaxy Entertainment as the top pick, followed by MGM China and Sands China, all rated Overweight, while Melco Resorts and SJM Holdings were rated Underweight.
Market Reactions: The report noted a decline in casino stocks, with Sands China slipping 2.5% after Citi cut its GGR forecast, reflecting broader market concerns about the gaming sector's performance.
UBS Research: Lunar New Year Daily GGR Average Falls Short; Recommended Stocks Include Melco Resorts, WYNN Macau, and MGM China
Macau GGR Performance: UBS reported that Macau's average daily Gross Gaming Revenue (GGR) during the Lunar New Year holiday was approximately MOP786 million, falling short of market expectations of MOP900-950 million, although it accelerated towards the end of the holiday.
Year-on-Year Comparison: The GGR run-rate increased to MOP1.2-1.3 billion per day in the last three days of the holiday, marking a 10-15% year-on-year increase, but the average daily GGR for the month to date remains down about 8% year-on-year and 11% month-on-month.
UBS Stock Recommendations: UBS identified Melco Resorts, WYNN Macau, and MGM China as top picks in the Macau gaming sector, with all receiving a "Buy" rating and specific target prices set for each stock.
Investment Ratings Overview: The report includes investment ratings and target prices for various Macau gaming stocks, with Melco Resorts at US$9.5, WYNN Macau at HK$8.9, MGM China at HK$18.5, and Galaxy Entertainment at HK$46.9, among others.
<Study>JPM Ratings and Price Targets for Casinos (Table)
Stock Performance: Galaxy Entertainment (00027.HK) saw a decrease of 0.975%, while Sands China Ltd (01928.HK) dropped by 2.474%. Other companies like MGM China and Wynn Macau also experienced declines in their stock prices.
Short Selling Data: Galaxy Entertainment had a short selling amount of $24.63M with a ratio of 19.415%, while Sands China Ltd had $35.30M in short selling with a ratio of 20.788%.
Analyst Ratings: Most companies listed, including Galaxy Entertainment, Sands China, and MGM China, received an "Overweight" rating, indicating a positive outlook from analysts.
Market Predictions: JPMorgan predicts a maximum 5% increase in Macau's February GGR, naming Galaxy Entertainment as a top pick, while UBS expects Sands China’s share price to react positively to its dividend announcement.
<Study>UBS Casino Ratings and Target Prices (Table)
Stock Ratings and Target Prices: Various companies in the gaming sector have received updated ratings and target prices, with Melco Resorts rated as "Buy" and Sands China downgraded from "Neutral" to "Buy".
Short Selling Data: Significant short selling activity is noted across several companies, with Sands China experiencing the highest short selling ratio at 52.992%.
Market Performance: Most companies listed, including Galaxy Entertainment and MGM China, have seen declines in their stock prices, with Galaxy down by 4.522%.
Analyst Recommendations: CLSA has highlighted Galaxy Entertainment and MGM China as top picks following a positive report on Macau's gaming revenue for February.
UBS Lowers Price Targets for Casinos, Upgrades SANDS CHINA LTD and MELCO INT'L DEV to Buy, Keeps 5% GGR Growth Prediction for This Year
Positive Outlook on Macau's Gaming Industry: UBS has a favorable view of Macau's gaming sector, citing strong year-to-date demand that supports sustainable growth in gross gaming revenue (GGR) for 2023.
GGR Growth Projections: The broker forecasts a 5% year-over-year GGR growth for 2026, with an anticipated increase of approximately 8% in the first half and a slowdown to about 3% in the second half.
Target Price Adjustments: UBS has lowered target prices for Macau casinos while upgrading SANDS CHINA LTD and MELCO INT'L DEV from Neutral to Buy, with new target prices set at $20.4 and $5.3, respectively.
Top Picks in the Sector: UBS identifies Melco Resorts & Entertainment and SANDS CHINA LTD as top picks, with Melco's target price set at US$9.4 and rated as a Buy.
HSI Closes Down 384 Points on Futures Settlement Day; Declines in Tech, Auto, Consumer, and Pharma Sectors
Hong Kong Stock Market Performance: The Hong Kong stock market opened higher but closed lower, with the HSI down 384 points (1.4%) at 26,381, and total market turnover at HKD259.277 billion.
CKI Holdings' Stock Surge: A consortium led by CKI Holdings sold UKPN, resulting in a 4.5% increase in its stock price, while CKH Holdings and Power Assets also saw significant gains.
Tech Sector Declines: Alibaba's stock fell 3.6% after a report predicted weak quarterly profits, while other tech stocks like Tencent and Meituan also experienced declines.
Pharmaceuticals and Consumer Stocks Drop: Various pharmaceutical and consumer stocks saw significant losses, with declines ranging from 3.3% to 9.2% across multiple companies.
JPM Adjusts February GGR Projections, Names GALAXY ENT as Preferred Choice
Macau's GGR Performance: Macau's gross gaming revenue (GGR) for the first 22 days of February reached MOP14.3 billion, with a daily average of MOP650 million, falling short of JPMorgan's expectations during the Lunar New Year period.
Forecast Adjustments: Due to mixed performance, JPMorgan revised its February GGR forecast to a flat to 2% increase year-on-year, down from a previous estimate of 2-5% growth, while maintaining a 12-13% growth expectation for the first two months of 2026.
Casino Stock Preferences: JPMorgan updated its preference order for Macau casino stocks, ranking Galaxy Entertainment as the top pick, followed by MGM China and Sands China, all rated Overweight, while Melco Resorts and SJM Holdings were rated Underweight.
Market Reactions: The report noted a decline in casino stocks, with Sands China slipping 2.5% after Citi cut its GGR forecast, reflecting broader market concerns about the gaming sector's performance.
UBS Research: Lunar New Year Daily GGR Average Falls Short; Recommended Stocks Include Melco Resorts, WYNN Macau, and MGM China
Macau GGR Performance: UBS reported that Macau's average daily Gross Gaming Revenue (GGR) during the Lunar New Year holiday was approximately MOP786 million, falling short of market expectations of MOP900-950 million, although it accelerated towards the end of the holiday.
Year-on-Year Comparison: The GGR run-rate increased to MOP1.2-1.3 billion per day in the last three days of the holiday, marking a 10-15% year-on-year increase, but the average daily GGR for the month to date remains down about 8% year-on-year and 11% month-on-month.
UBS Stock Recommendations: UBS identified Melco Resorts, WYNN Macau, and MGM China as top picks in the Macau gaming sector, with all receiving a "Buy" rating and specific target prices set for each stock.
Investment Ratings Overview: The report includes investment ratings and target prices for various Macau gaming stocks, with Melco Resorts at US$9.5, WYNN Macau at HK$8.9, MGM China at HK$18.5, and Galaxy Entertainment at HK$46.9, among others.
<Study>JPM Ratings and Price Targets for Casinos (Table)
Stock Performance: Galaxy Entertainment (00027.HK) saw a decrease of 0.975%, while Sands China Ltd (01928.HK) dropped by 2.474%. Other companies like MGM China and Wynn Macau also experienced declines in their stock prices.
Short Selling Data: Galaxy Entertainment had a short selling amount of $24.63M with a ratio of 19.415%, while Sands China Ltd had $35.30M in short selling with a ratio of 20.788%.
Analyst Ratings: Most companies listed, including Galaxy Entertainment, Sands China, and MGM China, received an "Overweight" rating, indicating a positive outlook from analysts.
Market Predictions: JPMorgan predicts a maximum 5% increase in Macau's February GGR, naming Galaxy Entertainment as a top pick, while UBS expects Sands China’s share price to react positively to its dividend announcement.
