Bulls are continuing to buy U.S. casino stocks today. Thanks to the renewal of licenses in China's gambling capital, Macau, and JP Morgan's recommendation upgrade, shares of Melco Resorts (MLCO.US) and Wynn Resorts (WYNN.US) are particularly keenly traded today. MGM Resorts (MGM.US) and Las Vegas Sands (LVS.US) are also gaining. The companies are being helped by improved investor sentiment in China, where there was a chance that the restrictive Zero Covid policy would be relaxed:
- Melco Resorts announced that the Macau government has provisionally granted a ten-year casino gaming and gambling license to Melco Resorts (Macau) Limited, a subsidiary of the company. The final award of such concession, as well as the terms of the concession agreement, remain to be determined by the Macau government. JPMorgan upgraded its rating on Melco Resorts shares from "neutral" to everweight, with a 2023 year-end target price of $10 per share.
"We are honored to have been selected and provisionally awarded a gaming license in Macau and would like to thank the Macau government for conducting a smooth and transparent process. We are committed to Macau and its development as a premier tourist destination in Asia." - Melco commented.
- JP Morgan also raised its recommendation for Wynn Resorts to "Overweight" from "Neutral." For Wynn shares, the target price for the end of 2023 according to JP Morgan analysts was $91. Wynn Resorts also received temporary licenses from the Chinese government to continue operating in Macau.
โโโโโโโLas Vegas Sands (LVS.US) shares, H4 interval. Shares of Las Vegas Sands and Wynn Resorts (yellow) and Melco (purple) have risen above the 100 and 200 session averages signaling entry into an uptrend. Source: xStation5
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