Credit Suisse 2015 Outlook On Gaming, Lodging & Leisure

Credit Suisse offered its 2015 Outlook on Gaming, Lodging & Leisure Friday along with its Best Ideas for 2015.

Analysts Joel Simkins and Benjamin Chaiken commented that they “see the most opportunity within lodging and leisure sectors, owing to the domestic consumer recovery, pricing opportunities, a low supply outlook, benign cost environment and tailwind from lower energy prices.”

Simkins added that the potential for capital return and stronger balance sheets should help lift stocks. The trend for lodging and cruise stocks to outperform gaming should also continue in 2015 according to the analyst note.

The analysts raised estimates on:

Marriott International Inc MAR - Outperform, $84 price target

Penn National Gaming, Inc PENN - Outperform, $17 price target

Boyd Gaming Corporation BYD - Neutral, $14 price target

Isle of Capri Casinos ISLE - Neutral, $11 price target

Diamond Resorts International Inc DRII - Outperform, $35 price target

The firm’s estimates were lowered on:
 
Pinnacle Entertainment, Inc PNK - Underperform, $20 price target

Las Vegas Sands Corp. LVS - Outperform, $65 price target

MGM Resorts International MGM - Outperform, $30 price target

Wynn Resorts, Limited WYNN - Neutral, $178 price target

Marriott International Inc was mentioned among the “Best Ideas for 2015” as it remains the “best-positioned operator” to benefit from both the U.S. and Macau.

Other “Best Ideas” included Hilton Worldwide Holdings Inc HLT which was cited as having a strong track record with investors, it was rated Outperform with a $30 price target.

Carnival Corporation’s CCL “culture and brands are transforming” under new leadership and was rated Outperform with a $52 price target.

Vail Resorts, Inc. MTN with its “trophy assets” was seen as a “premier” story in the lodging industry and was rated Outperform with a $100 price target.

Six Flags Entertainment Corp SIX should benefit from lower oil prices according to the analyst note and was rated Outperform with a $47 price target.