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UPDATE: CFRA downgrades MGM Resorts, Wynn and Las Vegas Sands on coronavirus fears
CFRA downgraded three casino stocks on Friday, citing concerns about the impact on their China and Macau operations from the coronavirus that has sickened thousands of people, mostly in China. Analyst Tuna Amobi downgraded MGM Resorts International to sell from hold, downgraded Wynn Resorts to strong sell from hold and downgraded Las Vegas Sands Corp. to sell from buy. For MGM, "through its majority stake (56%-owned) in MGM China, we note the company's meaningful exposure in Macau, where all casinos have remained closed in the past few days amid ongoing Chinese government actions related to the outbreak, with a seemingly uncertain timing for a potential return to normalcy (after the initial 15-day official shutdown)," Amobi write in a note to clients. "MGM could incur meaningful expenses during the temporary closure, with an unlikely insurance mitigation for business interruption." In the meantime, attendance and visitation in Macau is understood to have fallen sharply since the outbreak of the virus at the end of 2019, and gross gaming revenue fell 11% in January for a fourth consecutive monthly decline, according to Chinese data, Amobi wrote in all three notes. The analyst cut his stock price target on Las Vegas Sands to $62 from $70. He lowered his Wynn target to $115 from $135 and left his MGM target unchanged at $30. MGM shares were down 2% Friday and have fallen 4.4% in the year so far, while the S&P 500 has gained 3.3%. Wynn shares were down 3.2% and Las Vegas Sands was down 2.8%.
https://finance.yahoo.com/m/cd244c2...c2/update:-cfra-downgrades-mgm.html?.tsrc=rss
CFRA downgraded three casino stocks on Friday, citing concerns about the impact on their China and Macau operations from the coronavirus that has sickened thousands of people, mostly in China. Analyst Tuna Amobi downgraded MGM Resorts International to sell from hold, downgraded Wynn Resorts to strong sell from hold and downgraded Las Vegas Sands Corp. to sell from buy. For MGM, "through its majority stake (56%-owned) in MGM China, we note the company's meaningful exposure in Macau, where all casinos have remained closed in the past few days amid ongoing Chinese government actions related to the outbreak, with a seemingly uncertain timing for a potential return to normalcy (after the initial 15-day official shutdown)," Amobi write in a note to clients. "MGM could incur meaningful expenses during the temporary closure, with an unlikely insurance mitigation for business interruption." In the meantime, attendance and visitation in Macau is understood to have fallen sharply since the outbreak of the virus at the end of 2019, and gross gaming revenue fell 11% in January for a fourth consecutive monthly decline, according to Chinese data, Amobi wrote in all three notes. The analyst cut his stock price target on Las Vegas Sands to $62 from $70. He lowered his Wynn target to $115 from $135 and left his MGM target unchanged at $30. MGM shares were down 2% Friday and have fallen 4.4% in the year so far, while the S&P 500 has gained 3.3%. Wynn shares were down 3.2% and Las Vegas Sands was down 2.8%.
https://finance.yahoo.com/m/cd244c2...c2/update:-cfra-downgrades-mgm.html?.tsrc=rss
