These Gaming Stocks Are Under Pressure As Analyst Cuts Forecast On Macau Risk And Soft Vegas Data
Benzinga (Mon, 14-Apr 3:43 PM)
BofA Securities analyst Shaun C. Kelley shared his first-quarter preview of the gaming sector Monday.
Kelley already adjusted first-quarter estimates for full-year estimates to reflect a more uncertain Macau environment, incorporate regional gaming trends, discuss recent digital trends, tweak Macau share estimates, and lower his price targets to reflect the market re-rating.
It’s been volatile, but gaming stocks are down 12% year-to-date compared to the S&P’s 9% decline.
Also Read: Sony Raises PS5 Prices In Some Countries By Up To 25% In Anticipation Of Tariffs
Kelley is 5% below the Street in Macau, and given U.S./China tensions, expect a more cautious tone from operators.
The analyst did not think management teams were seeing softness in Las Vegas yet. Still, investors will be hyper-focused on any changes in visitation, bookings, cancellations, or behavior as they exited in March and April following the trade/geopolitical issues.
For regionals, Kelley is slightly below the Street for the first quarter, but visitation has been relatively steady ...
