Market Overview

5 Takeaways From Wells Fargo's Vegas Room Rate Survey

Share:
5 Takeaways From Wells Fargo's Vegas Room Rate Survey
Related PENN
NBA Intends To Take A 1% Cut, Or 'Integrity Fee,' If Sports Betting Is Legalized
BofA Bets On Boyd Gaming's Growth, Potential
Related BYD
41 Biggest Movers From Yesterday
34 Stocks Moving In Wednesday's Mid-Day Session
Winter weather nips at Boyd Gaming (Seeking Alpha)

Wells Fargo has published results of its Las Vegas room rate survey. Following are the five key takeaways from the survey:

1. Wells Fargo still expects 3–5 percent growth in the fourth quarter.

2. New Year's Eve trending down in low-single digits past couple weeks.

3. CES Week rates bullish with rates up nearly 25–30 percent on tough comp.

4. October citywide revenue per available room (RevPAR) grew 2 percent given tough comp.

5. Strength in first quarter 2017 not a singular event.

The survey came ahead of Las Vegas data, which is expected on December 29. Analyst McKnight estimates November Las Vegas Strip gaming revenues to be flattish to down 5 percent year-over-year.

Commentary

For regional gamers, the year-to-date November revenues were down 0.2 percent in line with McKnight’s estimates, while weather and New Year's Eve could be a ''wildcard'' for December results.

The analyst also warned that the first quarter results of regional gamers will be up against a difficult comp (+2.5 percent) on last year's mild winter. The key regional gamers include Penn National Gaming, Inc (NASDAQ: PENN), Pinnacle Entertainment Inc (NASDAQ: PNK), Churchill Downs, Inc. (NASDAQ: CHDN) and Boyd Gaming Corporation (NYSE: BYD).

Meanwhile, gaming stocks underperformed last week, but have outperformed year-to-date. The analyst said gaming stocks under coverage were down 2 percent on the week versus the S&P 500, which was flat on the week. Year-to-date, gaming stocks grew 19 percent, while S&P 500 advanced 11 percent.

Latest Ratings for PENN

DateFirmActionFromTo
Feb 2018Morgan StanleyMaintainsEqual-WeightEqual-Weight
Feb 2018Deutsche BankMaintainsBuyBuy
Jan 2018JefferiesInitiates Coverage OnBuy

View More Analyst Ratings for PENN
View the Latest Analyst Ratings

Posted-In: Analyst Color News Previews Topics Travel Events Analyst Ratings Movers Best of Benzinga

 

Related Articles (CHDN + BYD)

View Comments and Join the Discussion!