Las Vegas: Lady Luck Has Left the Casino

NEW YORK (TheStreet) -- Nevada gaming revenue continued its losing streak in January.

Navada gaming revenue for the month of January dropped 3.2% year-over-year to $883.3 million. On the Las Vegas strip, revenue also declined, by 3% to $495 million.

Then again, the Chinese New Year fell in February this year, compared with January last year, which could have also skewed results downward for this January's revenues.

Despite the lackluster results, shares of casinos continue rallying in Wednesday trading. Las Vegas Sands(LVS) is climbing 4% to $19.61, MGM Mirage (MGM) is growing 2.8% to $11.87, Wynn Resorts(WYNN) is up 2.1% to $71.21 and Boyd Gaming(BYD) is increasing 1.5% to $8.63.

Earlier today, a Sterne Agee analyst raised his price target on MGM, which is heavily reliant on Las Vegas.

"We believe the company's longer-term position is strengthening, especially given data suggesting potentially at or above peak convention rates and booking across its properties," analyst David Bain wrote in a note.

Bain upped his price target to $10 from $8.50.

While Bain says he isn't bullish on Las Vegas and doesn't expect to see a turnaround this year, he sees some positive indicators that should have a positive impact on MGM long-term.

-- Reported by Jeanine Poggi in New York.

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