Nomura Securities on China Macau Gaming: Looking Beyond...the Volatility
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Price: $101.61 -3.57%
Rating Summary:
34 Buy, 8 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Rating Summary:
34 Buy, 8 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Nomura Securities on China Macau Gaming
Analyst, Chalene Liu, said, "Macau gaming stocks have corrected an average of 22% since the end of April, we think in part on concerns about tougher comparisons. We see few positive catalysts in the near term and we have received numerous inquiries as to where we think the bottom for share prices might lie. On a technical basis, our quantitative team suggested 2.7% downside from current levels. On a fundamental basis, at 8-9 x FY12E EV/EBITDA and 0% y-y change for VIP revenue from Jun 2012 onwards, we think there is only on average 6.6% downside to our bear-case implied TP. We conclude that Wynn Macau (Nasdaq: WYNN) and SJM are among the most attractive from a risk-reward perspective. Apart from valuation, both names are further supported by strong cashflow and among the highest dividend yield of 6.5% and 5% within the sector."
Analyst, Chalene Liu, said, "Macau gaming stocks have corrected an average of 22% since the end of April, we think in part on concerns about tougher comparisons. We see few positive catalysts in the near term and we have received numerous inquiries as to where we think the bottom for share prices might lie. On a technical basis, our quantitative team suggested 2.7% downside from current levels. On a fundamental basis, at 8-9 x FY12E EV/EBITDA and 0% y-y change for VIP revenue from Jun 2012 onwards, we think there is only on average 6.6% downside to our bear-case implied TP. We conclude that Wynn Macau (Nasdaq: WYNN) and SJM are among the most attractive from a risk-reward perspective. Apart from valuation, both names are further supported by strong cashflow and among the highest dividend yield of 6.5% and 5% within the sector."
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