In the past six weeks, Citi analyst Anil Daswani has met with more than 100 institutional investors from around the world to discuss the outlook for Macau gaming stocks. According to Daswani, investors are still cautious on Macau, but many admit that the long-term free cash flow (FCF) story is compelling.

Hong Kong investors told Citi that they believe that the combination of positive mainland Chinese overnight visitation growth plus the openings of new resorts Galaxy Macau Phase 2 and Studio City has helped stabilize mass gross gaming revenue (GGR).

Daswani found U.S. investors far more cautious. He noted that he talked to a handful of extreme Macau bulls and bears, but the majority of U.S. investors are still on the sidelines waiting for definitive signs of improvement.

Australian investors raised concern over Crown reducing its stake in Melco Crown Entertainment Ltd (ADR) MPEL 0.43%. However, Citi argued…

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