Wall Street Bets is a roundup of recent notes from analysts covering the gambling industry.
According to Truist Securities analyst Barry Jonas, MGM Resorts International’s May 1 earnings call regarding the operators 2023 1st quarter report was “in line with recent estimates, but +8% ahead of the Street’s. We expected a strong quarter given a favorable Strip event calendar, strong regional data and sizable momentum in Macau. While expectations may have risen into the print, we think the commentary on the call was positive. While the Strip is headed into a seasonally slower period, we continue to see upside to estimates while valuation remains undemanding. … Reiterate Buy.”
Jeffries equity analyst David Katz, in a note issued May 1, wrote that VICI Properties was making “consistent solid progress.
“The quarter reflects the ongoing high level of activity toward generating accretive growth which is at the core of our bullish thesis, which should be modestly positive for the shares. Further, the inherent stability of the fixed revenue model and its comparative attractiveness in the currently limited visibility environment should drive outperformance through the long term.”
J. P. Morgan analyst Joseph Greff on Macau’s gross gaming revenue, May 1 wrote that “we think April’s market-wide GGR suggests that mass GGR likely recovered to ~75-85% of April 2019’s, so a nice pick up from the ~65% recovery during first quarter 2023. VIP has to be close to 25% recovered, driven by the Direct VIP segment.
“We continue to think that our thesis of all roads lead to Macau is very much intact, given steady, sequentially growing recovery that is still in its relatively early innings (market opened up on January 8, less than 4 months ago). We rate Las Vegas Sands, MGM, Melco Resorts, and Wynn Overweight.”