J.P. Morgan analysts praised Wynn Resorts, Station Casinos, and Rush Street Interactive ahead of third-quarter earnings calls. Las Vegas Sands was also singled out for its “positive view of Singapore.”
Price targets were raised for Wynn, which led with $13 (to $136 per share). Sands gained $4 to $60 per share, while Boyd Gaming was upped $2 to a goal of $89 apiece. Also gaining was Rush Street, up $2 to $18 per share.
Losers were Caesars Entertainment, moved down $1 to $43 per share, Churchill Downs, downgraded $2 to $128 apiece, and MGM Resorts International, shaved by $2 to $41.
“We remain measured on LV Strip operators, given soft leisure demand for fly-to destinations,” analysts cautioned. They added that any good news would be met with swift upward movement of stock prices.
The stock boffins predicted that Wynn would predominate in Macau and Sands would have a potent quarter in Singapore. Regional-casino performance was described as stable, with the exception that Station would probably exhibit the greatest and most sustainable growth of all.
“Underlying digital trends appear solid, but offset by unfavorable Sept. NFL hold, while investor focus will likely remain on prediction markets,” the report said, turning to online gambling. It opined that Rush Street was a strong performer and that igaming was largely insulated from prediction-market incursions.
“Stocks seem beaten down,” analysts wrote of the online sphere, noting sharp declivities since Labor Day in DraftKings (down 28 percent), Sportradar (off 15 percent) and Rush Street (minus 11 percent), in an overall positive stock market. The authors allowed, “It’s hard for investors to fight the negative prediction market-related news flow (especially into year-end), while unfavorable September OSB hold (well-understood) will likely limit upside to estimates.”
Even so, they predicted as much as a 17 percent increase in handle for sports betting in the third quarter and a 12.5 percent boost to igaming handle. Also, igaming revenue was predicted to soar 30 percent, laying the groundwork for a beat-and-raise scenario at Rush Street.
As far as DraftKings is concerned, “expectations are low,” management not having reacted to J.P. Morgan’s prediction of less than $145 million in third-quarter cash flow. Sportradar was thought to be in line with expectations.
Trends in regional gambling and local Las Vegas casinos were said to be consistent, with second-quarter strength manifesting in the third quarter as well. In Las Vegas, slot play was said to be tracking five percent higher. Analysts added, “We expect the key focus to be on consumer health, high-end vs. low-end, and the promotional environment.”
Morgan stock-graders described expectations for the Las Vegas Strip as “justifiably low.” They said the focus would instead be on the fourth quarter and 2026. Key factors to watch were enumerated as management changes, leisure demand, and group-business pacing.
“We think 3Q25 will be characterized by weak non-gaming trends,” analysts predicted. Gambling trends, they thought, would be somewhat improved, save for baccarat, characterized by steep hold percentages.
