UPDATE: Brean Capital Initiates Coverage On Melco Crown As Studio City Opens 3Q15 Driving 2016 Gains

In a report published Thursday, Brean Capital analyst Bryan Maher initiated coverage on

with a Buy rating and $31.00 price target. In the report, Brean Capital noted, "Melco Crown targets all segments of gaming customers at its integrated casino resorts in Macau (SAR of China) and the Philippines. It is also widely credited for being one of the first to target the profitable premium mass market segment at its very successful City of Dreams casino resort on Cotai (Macau). Melco, similar to all other concessionaires in Macau, has seen weaker y/y results over the past 3Qs as China Premier Xi Jinping's anti-corruption crackdown has kept VIP players at bay. However, given its heavy gearing toward the mass and premium mass market segments, we expect Melco to outperform the market in 2015 and 2016, especially with its 3Q15 Studio City casino opening on the Cotai Strip. We believe Melco Crown shares are materially oversold at current levels and should be bought in anticipation of accelerating earnings growth with this new property opening." Melco Crown closed on Wednesday at $21.88.