Analysts are continuing to big up the stocks in a number of Macau’s biggest gaming companies as the enclave’s success shows now signs of letting up. Citi Group was said to be “upbeat” on the prospects of certain companies in the gambling industry enclave. They picked out Sands China and Melco Crown in particular, with a note stating, “Momentum so far in August remains strong and we believe inflows to Macau will continue to accelerate.”
Citi Group added that Sands China would see future gross revenue growth with the opening of the Conrad and Holiday Inn hotels at their new Cotai strip resort in April 2012.
Lazard Capital Markets were just as happy to brown-nose the Far East’s biggest gambling industry enclave. One of their analysts raised his ratings for both Wynn Resorts and Sands China parent company Las Vegas Sands (LVS) thanks to their respective strongholds in Asia.
The analyst in question, Jake Fuller, noted, “Economic issues in the U.S. and Europe could hit China, but Las Vegas Sands and Wynn Resorts should be better positioned than the rest of the U.S.-centric gaming and hotel stocks,”
Wynn owns both Wynn Macau and Encore at Wynn Macau whereas LVS has Sands Macao, Venetian Macao Resort and Marina Bay Sands in Singapore. There will come a time when the market starts to slow in Macau and the uncertainty surrounding whether licenses are going to be renewed by the enclave’s government put to bed. When this does happen it will either signal a shift to another Far East territory or that Macau will continue to see success.