It may finally be time for investors to start dipping their toes back into Macau casino stocks. However, Goldman Sachs analyst Simon Cheung believes investors still need to be selective. According to Cheung, Wynn Resorts, Limited WYNN 1.14% and MGM Resorts International MGM 2.52% are Goldman’s two preferred U.S.-listed Macau plays.
Wynn Macau
Goldman is positive on Wynn Macau, and Cheung mentions several key takeaways from the company’s Q1 report. First, Wynn Palace remains on schedule to open in Q3, and management is optimistic about table allocations for the new resort. In the month of April, the company saw continued stabilization in the VIP segment and year-over-year growth in mass market numbers. Finally, management doesn’t anticipate the new ban on phone betting in Macau will have a significant impact on business.
Goldman maintains a Buy rating on Wynn’s China unit.
MGM Macau
MGM has a similar set of potential positive catalysts in the works. The company noted improving player numbers and volume in late April into May Golden Week. In addition, MGM Cotai is on schedule to open in Q1 of 2017.
“Competition from new projects this year may present…
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