Casino Stocks Advance Further on Optimism About China's Stimulus Moves
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The Wynn Macau casino resort, operated by Wynn Resorts Ltd., in Macau, China, on May 2, 2024.In This Article:
Key Takeaways
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Shares of Wynn Resorts, Las Vegas Sands, and MGM Resorts International have been lifted by China's measures to boost its economy.
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The steps by Beijing are expected to boost business at their casinos in Macau.
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Wynn Resorts also received an upgrade from Morgan Stanley.
Shares of Wynn Resorts (WYNN), Las Vegas Sands (LVS), and MGM Resorts International (MGM) gained again Friday on optimism that the big stimulus package announced by China will increase business at their casinos in Macau.
All three have posted strong gains this week from the moves from Beijing designed to push the country's 2024 economic growth closer to its 5% target.
China's central bank moved to cut interest rates and inject liquidity into its banking system, and more economic drivers are expected to come before the country's National Day holiday on Oct. 1.
Wynn Resorts Stock Gets Morgan Stanley Upgrade
Wynn Resorts shares received an added boost from Morgan Stanley, which upgraded the stock on what it called a "favorable risk-reward." The bank raised its rating to "overweight" from "equal-weight," and lifted the price target $7 to $104.
Morgan Stanley pointed to a "combination of near low valuation, an underappreciated growth opportunity in UAE, and optionality around Macau."
With this week's advance for the casino operators, Wynn Resorts and Las Vegas Sands shares moved positive territory for 2024. MGM Resorts International is still down 11% for the year.
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