Citi Ups 2017 Macau Gaming Revenue Forecast To +10%
With November Macau gaming revenue numbers due out Thursday, Citi has upped its price targets for Macau casino stocks and believes the world’s largest gaming destination will return to positive revenue growth in 2017.
Things Looking Brighter For Macau
In a new report, Citi analyst Anil Daswani said Macau investors can expect 2017 to usher in the first positive year of gross gaming revenue (GGR) growth since 2013.
According to Daswani, Macau’s growth will be driven by the mass market revenue, which he expects will reach record levels by the end of 2017.
“We anticipate Mass GGR to reach a record high of MOP37.7bn in 4Q17E (vs. the previous high of MOP37.1bn achieved in 1Q14),” Daswani explained.
Citi now projects Macau gaming revenue will close out 2016 with GGR down roughly 4 percent on the year. In 2017, Citi is now calling for 10 percent year-over-year GGR growth.
Consensus And Specifics
Citi was well above Wall Street consensus when it comes to Macau’s outlook, and Daswani predicts that other analysts will soon have to make much more aggressive earnings revisions than Citi has made.
Disclosure: The author is long MPEL.
Image Credit: By Daniel J. Prostak (Daniel J. Prostak) [GFDL or CC BY 3.0], via Wikimedia Commons
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