Casino Stock Winners and Losers: Melco
When Melco Crown Entertainment (MPEL) opens its City of Dreams casino in Macau, China, it will draw some business away from Las Vegas Sands (LVS) - Get Report and Wynn Entertainment (WYNN) - Get Report, according to one analyst, who lowered her price targets on the latter two companies.
Melco shares were trading up 5.6% to $5.90 around 1 p.m. Tuesday.
Janet Brashear of Bernstein Research predicts the new casino, opening June 1, will pull in $1.4 billion in gross gaming revenue next year and 10% of market share.She anticipates some of that business will come at the expense of the Wynn Macau and Sands' Venetian Macao.
Brashear reaffirmed Wynn's market perform rating but cut its price target to $37 from $40. She kept an outperform rating on Las Vegas Sands, which on Friday
in Bethlehem, Pa., but lowered its price target to $10 from $12.
Wynn shares were up 6.2% to $38.07, and Las Vegas Sands was up 4.4% to $9.35, as were most casino companies with the overall stock market.
Elsewhere,
MGM Mirage
(MGM) - Get Report
was down 4.6% to $7.24.
Boyd Gaming
(BYD) - Get Report
was up 7.8% to $10.11.
Penn National Gaming
(PENN) - Get Report
was up 7.3% to $30.58.
Ameristar Casinos
(ASCA)
was up 5.6% to $19.53.
Isle of Capri Casinos
(ISLE)
was up 2.6% to $12.32
Pinnacle Entertainment
(PNK) - Get Report
was up 3.1% to $11.
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.
