Gaming | Local casino operators stocks may rise 30pct

The beaten-down shares of Macau’s casino operators are worth a gamble, according to Credit Suisse. Some shares could rise more than 30 percent by the end of 2016.
According to Barron’s Online, “Prospects in Macau are looking less gloomy.” One of the factors that could improve business for the gaming operators is the announcement by mainland authorities of a less stringent visa policy. This will again increase the number of days that visitors are permitted to stay in the region when in transit to another destination.
Another factor is seasonal, since China is entering its summer high season for gaming, and this could bring a return to sequential, if not year-on-year, revenue growth.
Credit Suisse on Tuesday upgraded MGM China, Sands China and Wynn Macau to “outperform,” predicting increases of 38 percent, 31 percent and 18 percent, respectively, by the end of 2016. In its view, the challenges are well understood by investors, and government support for the casino sector, both in Macau and Beijing, is improving.