HONG KONG – Macau casino shares are poised for a 50 percent rebound if history repeats itself, according to Morgan Stanley.
Based on the last cycle that ended in July 2012, shares are set to recover on the back of improving earnings, followed by a sharp correction, analysts Praveen K Choudhary and Jeremy An wrote in a note late last week. A Bloomberg Intelligence index for Macau casinos has tumbled more than 30 percent since this year’s peak in May as gaming revenue growth slowed and analysts turned cautious on the sector.
That echoes the previous cycle, when VIP revenue growth started to decelerate and dragged down shares by 30 percent, the note said. Stocks then bottomed and began a steep rebound.
PLEASE READ THE FULL ARTICLE IN OUR PRINT EDITION.
