Casino cos. with Macau properties

Sep 26, 2009 1:12 AM
Staff & Wire Reports |

Recent Macau gaming revenue growth is likely to continue, benefiting casino operators with properties in the Chinese enclave, an analyst said Friday.

Janet Brashear of Bernstein Research said in a client note that Macau gaming revenue has been climbing since July, with speculation that September's gaming revenue could be up as much as 60 percent. The analyst expects easing visa restrictions, caps on junket commissions and the Golden Week holiday in October to help push gaming revenue higher.

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Brashear anticipates Macau gross gaming revenue for 2009 will top last year's results and she increased her earnings before interest, taxes, depreciation and amortization expectations for Las Vegas Sands Corp. (LVS) and Wynn Resorts Ltd. (WYNN)

The analyst thinks Las Vegas-based Wynn also will gain from its Macau initial public offering, citing reports that it is heavily oversubscribed.

Brashear increased Wynn's price target to $61 from $54 and reaffirmed a "Market Perform" rating. The casino operator's stock added $1.44, or 2.1 percent, to $71 in morning trading.

She boosted Las Vegas Sands' price target to $18 from $17 and kept an "Outperform" rating. The Sheldon Adelson-led company's stock gained 58 cents, or 3.3 percent, to $17.98. The shares have traded in a range of $1.38 to $39.88 over the last year.

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