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Citi lowers Macau's fourth quarter and next year gambling revenue forecast, cuts target prices for multiple gambling stocks

2020-09-28T11:26:50.877Z


The National Day and Mid-Autumn Festival holidays are around the corner. Market participants are concerned that Macau's tourism and gaming industry can regain popularity during the long holidays. However, Citigroup believes that the Chinese government is dealing with mainland tourists going to Macau for tourist visas.


Financial News

Written by: Zhang Weilun

2020-09-28 19:11

Last update date: 2020-09-28 19:11

The National Day and Mid-Autumn Festival holidays are around the corner. Market participants are concerned that Macau's tourism and gaming industry can regain popularity during the long holidays.

However, Citigroup believes that the Chinese government is "severely restricted" in handling mainland tourists' travel endorsements to Macau, and it has cut its gaming revenue for the fourth quarter and next year, and cut its targets for multiple gambling stocks.

Citi pointed out that the mainland has temporarily set a "soft cap" on the number of visas for tourists to Australia, and it is expected that if there is no new wave of epidemics, travel visas will return to normal before the Chinese New Year next year.

Citigroup's latest forecast for Macau's gambling revenue in the fourth quarter will fall by 74% year-on-year, and it will lower its forecast for next year's gambling revenue by 9% to US$30 billion, a decrease of 18% compared to 2019.

The bank also lowered the target price of a number of casino stocks, among which the target price of GEG (0027) was reduced from 66.5 yuan to 63 yuan, the target price of Sands (1928) was lowered from 44.5 yuan to 42.5 yuan, and SJM (0880) target price was reduced To 11.5 yuan, the target price of MGM (2282) fell to 11.5 yuan, and the target price of Melco International (0200) fell to 16.4%.

, Wynn (1128) target price dropped to 13 yuan.

However, the bank is still optimistic about the prospects of gaming stocks and recommends buying on dips, including Sands, GEG and SJM.

Citigroup Macau Macau Gambling Industry

Source: hk1

All news articles on 2020-09-28

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