Investment | A good time to bet on Macau’s gaming stocks?

Macau’s gaming revenue slumped for the eighth consecutive month in January. However, as experts say a rebound is due in the second half of the year, some analysts have made assurances that this might be the right momentum that people need to invest in Macau’s gaming stocks, American business news TV channel CNBC reported.
According to Grant Govertsen, principal analyst at Union Gaming, a slowdown in the decline of monthly gross gaming revenue beckons a period of stabilization, with the decline in gaming revenue due to be “less onerous” in the coming months.
Shares of casino operators plunged over 30 percent last year, but prices are due to rebound. “The government has taken various actions to ‘reset’ Macau. It seems they are back into making Macau the preferred entertainment destination of China,” said Mr Govertsen.
However, other analysts tend to be more cautious. CIMB maintains a neutral rating. “Unless you see another major shock in terms of policy, we think current valuations are quite supportive,” CIMB analyst Michael Ting said, as quoted by CNBC. “On the other hand, we don’t see many positive catalysts in the near term,” he added.
Credit Suisse is also more prudent, with analysts writing in a report that “even if gross gaming revenue recovers gradually into the second half [of the year], the sector would still be trading at a price-earnings ratio of about 18.4 times expected 2015 earnings, versus the historical average of 17.6 times, leaving limited upside.”