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Macau Negatives Priced In, Time To Accumulate Says Ken Fong

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Credit Suisse's Ken Fong sees the worst of Macau problems for Casino's behind them now. Fong highlights the sector is under-owned and seasonally stronger months are ahead.

"With the central and Macau governments essentially putting a "policy floor" on the industry revenue, we believe that the worst is over for both GGR and share prices." Fong wrote. This policy is helping to support the limits to the downside and this has generated an attractive risk-reward to the upside for shares.

Fong upgrades MGM Resorts International (NYSE: MGM)'s Macau operations to Outperform from Neutral and upgrades Wynn Resorts, Limited (NASDAQ: WYNN)'s Macau to Outperform from Neutral.

Latest Ratings for MGM

DateFirmActionFromTo
Oct 2016Argus ResearchUpgradesHoldBuy
Oct 2016NomuraMaintainsBuy
Aug 2016Buckingham ResearchInitiates Coverage onBuy

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Posted-In: Analyst Color Upgrades Analyst Ratings

 

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