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Stifel Offers Updates On Best Ideas In Gaming & Leisure

Stifel Offers Updates On Best Ideas In Gaming & Leisure

The rest of 2016 could be a wild ride for gaming & leisure investors, but a number of stocks in the space may still have significant upside ahead. According to Stifel analyst Steven Wierczynski, gaming & leisure stocks will likely continue to be unpredictable and volatile.

Gaming Group

Macau investors got some good news earlier this month when total gross gaming revenue growth crossed back into positive territory for the first time in 26 months. However, Wierczynski is expecting numbers out of Macau to be inconsistent, as the market digests the opening of a series of new resorts.

“Overall, we continue to like the Macau market’s longer-term growth potential; however, we believe there will be considerable month-to-month gyrations in the market’s underlying fundamentals until all of the new supply is fully absorbed,” he explained.

Related Link: Susquehanna Raises Price Targets On Casino Stocks

Stifel has upped its price target for Buy-rated Las Vegas Sands Corp. (NYSE: LVS) from $56 to $61 and names the stock its top Macau gaming pick. In addition, Stifel names Buy-rated MGM Resorts International (NYSE: MGM) its top Las Vegas destination pick and Red Rock Resorts Inc (NASDAQ: RRR) its top regional gaming stock.

Leisure Group

Wierczynski is particularly bullish on cruise stocks.

“Call us crazy, but we actually expect the cruise operator group to deliver the strongest relative performance over the balance of the year,” he noted.

Stifel names Buy-rated Royal Caribbean Cruises Ltd (NYSE: RCL) as its top cruise stock.

For the rest of the leisure space, the firm selects Buy-rated ClubCorp Holdings Inc (NYSE: MYCC) as its top idea.

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Latest Ratings for LVS

Apr 2019DowngradesBuyHold
Mar 2019AssumesNeutral
Mar 2019MaintainsOverweightOverweight

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