Investors – Las Vegas casinos were big winners in November in Macau, the world’s top gaming destination.
RBC Capital Markets analyst John Kempf said Friday in an analysis of gambling revenue figures released earlier by Macau officials that Las Vegas Sands (LVS), Wynn Resorts (WYNN) and MGM Resorts International (MGM) all saw big gains form the month.
Meanwhile, Hong Kong-based SJM Holdings “had an atypically weak month,” he said.
Macau’s total gambling revenue grew 21.1% in November vs. the same month a year ago, to $3.8 billion, edging RBC’s forecast for a 20% increase.
Sands, the world’s largest casino company and on the proprietary IBD Leaderboard list of top-rated stocks, keeps drawing winning cards.
It improved its Macau market share by 100 basis points, to 21.9%, and was leader in the mass market category, mainly middle-class tourists from China and elsewhere.
Sands’ stock earlier surged 4% Wednesday after Standard & Poor’s upgraded its credit rating to BBB- from BB+ with a stable outlook.
Sands rose less than 1% in Friday afternoon trading on the stock market today. MGM surged 3% and Wynn rose a bit.
Meanwhile, Sands’ archrival in Macau, Melco Crown Entertainment (MPEL), was downgraded on Wednesday from Goldman Sachs’ conviction buy list to a buy rating.
Goldman said Melco Crown’s Cotai, Macau casinos outperformed the market last quarter and it expects “less dramatic positive earnings revisions momentum” this quarter. Melco Crown fell.
Kempf forecasts seasonally slow growth for Macau casinos this month.
