Casino-related stocks listed on the New York Stock Exchange are showing strong performance. Macau authorities have announced that they will reopen to mainland Chinese tourists as early as November.
Casino-related stocks listed on the New York Stock Exchange are showing strong performance. Macau authorities have announced that they will reopen to mainland Chinese tourists as early as November.
Macau casino operations resume
ccording to Barron’s, an investment media outlet, on the 26th, Macau Chief Executive Ho Yat Seng announced at a press conference last weekend that tourism to Macau by mainland Chinese could resume as early as November.
On this news, Melco Resorts & Entertainment (ADR) (NAS:MLCO) is trading at around $6.8 on the New York Stock Exchange, up nearly 30% at one point. Las Vegas Sands (NYS:LVS) is also changing hands around $40, up more than 14%. Wynn Resorts (NAS:WYNN) also rose 14% and was trading around $68. MGM Resorts International (NYS:MGM) is up 4% to around $31.
Melco Resorts & Entertainment (ADR) (NAS:MLCO) is down 48% this year alone, and Las Vegas Sands (NYS:LVS) is down 5.8%. Wynn Resorts (NAS:WYNN) is also down 30% this year, and MGM Resorts International (NYS:MGM) is down 33%.
The Standard & Poor’s (S&P) 500 index has fallen about 22% this year.
JP Morgan analyst Joseph Greff said the news was “the first meaningful travel policy or measure to strengthen travel mobility since the outbreak of COVID-19.”
He added that this situation is also surprising to 토토사이트 investors and is “positive for all Macau-based stocks.”
He proposed an overweight investment opinion on Las Vegas Sands (NYS:LVS) and MGM Resorts International (NYS:MGM) and presented a 12-month target price of $44 and $47, respectively. He also gave a neutral rating for Melco Resorts & Entertainment (ADR) (NAS:MLCO) and Wynn Resorts (NAS:WYNN), with target stock prices of $5 and $69, respectively.
He emphasized that Las Vegas Sands (NYS:LVS) is his top pick. This is because, as the recovery of the tourism market is still in its early stages, revenue estimates from not only the reopening of the Macau casino market but also the Marina Bay Sands real estate in Singapore are positive.
Prior to this, casino companies had suffered over the past few years due to China’s zero-coronavirus policy and a ban on mainland tourists visiting Macau, the world’s largest gambling center. Last July, as COVID-19 spread again, Macau closed almost all businesses for two weeks.
