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.
On The Fly: Analyst Downgrade Summary Today's noteworthy downgrades include: 3D Systems (DDD) downgraded to Hold from Buy at Brean Capital... Angie's List (ANGI) downgraded to Hold from Buy at Needham... Avalon Rare Metals (AVL) downgraded to Neutral from Buy at Citigroup... Axiall (AXLL) downgraded at Cowen... BB&T (BBT) downgraded to Neutral from Buy at Goldman... Boeing (BA) downgraded at Credit Suisse... Boulder Brands (BDBD) downgraded to Hold from Buy at Canaccord... Citrix (CTXS) downgraded to Hold from Buy at Drexel Hamilton... ClickSoftware (CKSW) downgraded to Hold from Buy at Lake Street... DTS, Inc. (DTSI) downgraded to Underweight from Neutral at JPMorgan... GulfMark Offshore (GLF) downgraded to Market Perform from Outperform at Cowen... Home Loan Servicing (HLSS) downgraded to Neutral from Buy at Compass Point... ICON plc (ICLR) downgraded to Equal Weight from Overweight at First Analysis... IPC The Hospitalist Co. (IPCM) downgraded to Market Perform at Wells Fargo... Melco Crown (MPEL) downgraded to Neutral from Buy at Nomura... Mercer (MERC) downgraded at Credit Suisse... ONEOK Partners (OKS) downgraded to Neutral from Buy at BofA/Merrill... Owens Corning (OC) downgraded to Neutral from Overweight at JPMorgan... Regency Energy Partners (RGP) downgraded to Neutral from Buy at BofA/Merrill... The Medicines Co. (MDCO) downgraded to Neutral from Buy at BofA/Merrill... Tupperware Brands (TUP) downgraded to Neutral from Overweight at JPMorgan... Union Bankshares (UBSH) downgraded at RW Baird... VOC Energy Trust (VOC) downgraded at RBC Capital... Yelp (YELP) downgraded to Hold from Buy at Stifel.
Melco Crown shares could rally $10 on Osaka win, says Citigroup Citigroup estimates shares of Melco Crown could rally up to $10 should the company win a gaming license in Osaka, Japan. Citi expects the gaming bill in Japan to be passed in November, and notes Melco is a major candidate in Osaka. The firm believes the upcoming opening of City of Dreams Manila will be a "game changer" to the Philippines gaming market. It lowered its price target for shares to $43 from $46 and keeps a Buy rating on the name.