Melco Crown long-term story, valuation still compelling, says Janney Capital Janney Capital attributes recent weakness in Melco Crown shares on a recent report that UnionPay was cracking down on illegal use of payment cards and a story regarding a junket operator who was said to have disappeared with over $1B. Janney said the UnionPay action was mostly related to mobile and the firm doesn't expect it to have a long-term impact. Janney also said its sources indicate the junket operator figure was overblown by the press. The firm maintains its Buy rating and $50 fair value estimate on Melco.
Deutsche cuts 2015 Macau growth forecast to down 21.4% Deutsche Bank lowered its 2015 Macau gross gaming revenue forecast to down 21.4% from down 8.4% saying the demand issues will not be solved by expanding capacity. The firm's confidence in a Macau turnaround remains "muted," but it continues to view shares of MGM Resorts (MGM) as "meaningfully undervalued." It views Buy-rated Wynn Resorts (WYNN) as better suited for longer term investors at this stage, and lowered its price target for the stock to $170 from $176. Deutsche also cut its price target for Hold-rated Las Vegas Sands (LVS) to $49 from $53.