Betting on China: Macau casino revenue jumps to the highest level since before the pandemic
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 01 2024
0mins
Source: SeekingAlpha
Macau Gaming Revenue in May:
- Macau's gross gaming revenue increased by 29.7% year-over-year to 20.2 billion patacas in May, surpassing analyst estimates.
- The revenue was the highest since January 2020 and was driven mainly by Baccarat.
- May GGR was also 8.9% higher than April due to the May Golden Week celebration.
- The last few days of May were affected by a tropical depression system.
Yearly Performance and Investor Sentiment:
- For the first five months of the year, Macau's GGR rose by 47.9% compared to the previous year.
- Macau's GGR for the year is at about 79% of the pre-pandemic level in 2019.
- Investor caution exists around Macau casino stocks despite positive spending trends among affluent visitors.
Market Share and Forecasts:
- Melco Resorts is expected to have gained the most market share in the Macau casino sector since the beginning of the year.
- A recent survey by CLSA showed that most gamblers plan to maintain or increase their spending in Macau.
Related Casino Stocks:
- Companies like Wynn Macau, Wynn Resorts, Sands China, Las Vegas Sands, MGM China, MGM Resorts, Galaxy Entertainment, SJM Holdings, Melco Resorts & Entertainment, and Studio City International are involved in Macau-related casino stocks.
Stock Performance and Analyst Insights:
- Las Vegas Sands and Melco Resorts have seen positive stock performance.
- BoA forecasts market share gains for Melco Resorts.
- Macau's casino gaming revenue in May is exceeding expectations.
Analyst Views on SBUX
Wall Street analysts forecast SBUX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SBUX is 96.12 USD with a low forecast of 59.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
12 Buy
7 Hold
2 Sell
Moderate Buy
Current: 95.830
Low
59.00
Averages
96.12
High
115.00
Current: 95.830
Low
59.00
Averages
96.12
High
115.00
About SBUX
Starbucks Corporations is a roaster, marketer, and retailer of specialty coffee globally. Its North America segment includes the United States and Canada. Its International segment includes China, Japan, Asia Pacific, Europe, Middle East and Africa, Latin America, and the Caribbean. Its North America and International segments include both Company-operated and licensed stores. The Channel Development segment includes roasted whole bean and ground coffees, Starbucks-branded single-serve products, a variety of ready-to-drink beverages, such as Frappuccino and Starbucks Doubleshot, foodservice products, and other branded products sold outside the Company-operated and licensed stores. A large portion of its Channel Development business operates under a licensed model of the Global Coffee Alliance with Nestle, while its global ready-to-drink businesses operate under collaborative relationships with PepsiCo, Inc., Tingyi-Ashi Beverages Holding Co., Ltd., Arla Foods amba, Nestle, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
