The rest of 2016 could be a wild ride for gaming & leisure investors, but a number of stocks in the space may still have significant upside ahead. According to Stifel analyst Steven Wierczynski, gaming & leisure stocks will likely continue to be unpredictable and volatile.
Gaming Group
Macau investors got some good news earlier this month when total gross gaming revenue growth crossed back into positive territory for the first time in 26 months. However, Wierczynski is expecting numbers out of Macau to be inconsistent, as the market digests the opening of a series of new resorts.
“Overall, we continue to like the Macau market’s longer-term growth potential; however, we believe there will be considerable month-to-month gyrations in the market’s underlying fundamentals until all of the new supply is fully absorbed,” he explained.
Stifel has upped its price target for Buy-rated Las Vegas Sands Corp. LVS 0.21% from $56 to $61 and names the stock its top Macau gaming pick. In addition, Stifel names Buy-rated MGM Resorts International MGM 0.39% its top Las Vegas destination pick and Red Rock Resorts Inc RRR 0.84% its top regional gaming stock.
Leisure Group
Wierczynski is particularly bullish on cruise stocks.
“Call us crazy, but we actually expect…
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