Important points
Shares of Wynn Resorts, Las Vegas Sands and MGM Resorts International rose on the back of China’s economic stimulus. Macau’s casino business is expected to expand due to the Chinese government’s measures. Wynn Resorts also received an upgrade from Morgan Stanley.
Shares of Wynn Resorts (WYNN), Las Vegas Sands (LVS) and MGM Resorts International (MGM) rallied on Friday on optimism that Macau’s casino business will expand due to China’s massive economic stimulus package. rose again.
All three countries posted strong gains this week as the Chinese government aims to bring economic growth closer to its 5% target for 2024.
The People’s Bank of China has moved to cut interest rates and inject liquidity into the banking system, with further economic boost expected ahead of the National Day holiday on October 1.
Wynn Resorts stock upgraded to Morgan Stanley
Wynn Resorts shares received another boost from Morgan Stanley, which lifted the stock based on what it called “favorable risk-reward.” The bank raised its rating to “overweight” from “equal weight” and raised its price target by $7 to $104.
Morgan Stanley pointed to a “combination of near-low valuations, undervalued growth opportunities in the UAE, and optionality around Macau.”
This week’s gains for casino operators have pushed Wynn Resorts and Las Vegas Sands stocks into positive territory heading into 2024. MGM Resorts International is still down 11% since the beginning of the year.
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