NEW YORK ( TheStreet) -- JPMorgan is bullish on Macau gaming companies and has raised its price target for companies across the board. Specifically, the rating agency is positive on Wynn Resorts (WYNN) and Melco Crown (MPEL).
In June 2011, gaming revenue in Macau soared 52.4% to $2.6 billion from the year-ago month, indicating Chinese tourists' penchant for gambling. Meanwhile, for the first half of the year, Macau's total gaming revenue increased 44.6%.
During May 2011, Nevada, which accounts for almost 60% of U.S. casinos, recorded 16.2% increase in total gambling winnings over the year-ago month. With majority of the states in the U.S. focusing on casinos and racinos, lotteries remain the primary source of gambling revenue, generating $16.3 billion nationwide during fiscal 2010. Las Vegas, the city famed for casinos, recorded revenue growth of 28.9% in May.
A Bloomberg consensus expects these seven stocks from the casino industry to generate attractive returns over the next 12 months. The stocks could gain 5% to 21% with 57% buy ratings and 36% hold recommendations.
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