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 - Get Report) and Melco Crown (MPEL - Get Report).
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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