MLCO Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Melco Resorts & Entertainment Ltd (MLCO) is not a strong buy for a long-term beginner investor at the moment. While the stock has potential for modest short-term gains, the lack of significant positive catalysts, mixed analyst sentiment, and weak financial performance in the latest quarter make it less appealing for a long-term investment strategy. The investor should consider waiting for clearer growth signals or a more favorable entry point.
The MACD is positive and expanding, indicating bullish momentum. RSI is neutral at 66.562, suggesting no overbought or oversold conditions. Moving averages are converging, showing no clear trend. The stock is trading near its R1 resistance level of 5.927, with support at 5.545.
The stock is trading at an attractive valuation according to UBS.
Citi also reduced its price target to $10.50, citing concerns over bad debt and strategic alternatives. The company's net income and EPS have significantly declined in the latest quarter.
In Q4 2025, revenue increased by 8.59% YoY to $1.29 billion. However, net income dropped by -399.08% YoY to $60.63 million, and EPS fell by -350.00% YoY to $0.05. Gross margin improved slightly to 25.17%, up 5.23% YoY.
Analyst sentiment is mixed. UBS and Texas Capital have Buy ratings with price targets of $9.50 and $11.50, respectively, citing long-term growth potential. However, Morgan Stanley and Citi have lowered their price targets, citing near-term challenges in Macau's gaming sector and weaker-than-expected EBITDA growth.
