Macau Continues to Report Strong Growth, Wynn Upgraded by CLSA

Sterne Agee analyst David Bain released some bullish comments on Macau, China's version of Las Vegas.

In the note, Bain said table-only gross gaming revenue totaled $2.7 billion, and April's gross gaming revenue run-rate is now up nine percent year-over-year.

Bain believes management teams with exposure to Macau will remain bullish on the regions future prospects. Beginning May 1, the three-day Golden period starts.

Gaming companies with Macau exposures include Las Vegas Sands LVS, MGM Resorts MGM, Wynn Resorts WYNN and Melco Crown Entertainment MPEL.

On Tuesday, CLSA raised the price target for Wynn Resorts from $250 to $350. Analysts at the firm expect gaming revenue in Macau to rise 100 percent to $90 billion by 2018.

According to CLSA, given infrastructure bottlenecks, Macau has not experienced growth in the same fashion Hong Kong has. Capacity constraints may be “highly positive” to industry profitability.

Shares of Las Vegas Sands, MGM, Wynn, and Melco Crown are up 5.7, 5.1, 6, and 4.3 percent respectively.