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<Research>UBS: MO Gaming Premium Segment Expected to Continue Leading Growth
Recommend 13 Positive 23 Negative 14 |
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Given the solid demand momentum in Macau's gaming industry since the beginning of the year, UBS remained confident in the sustainability of GGR growth in 2026, UBS said in its report. The broker forecast the premium segment will continue to juice growth, underpinned by increased suite supply, including suite renovations at The Venetian under SANDS CHINA LTD (01928.HK), upgrades to room inventory at MGM CHINA (02282.HK)'s MGM Macau, expansion of premium room capacity (including Phase 4 of Galaxy Macau by GALAXY ENT (00027.HK) expected to be completed by end-2027 and the Enclave Tower of WYNN MACAU (01128.HK) in 2029), as well as the opening of the REM hotel by MELCO INT'L DEV (00200.HK) in 3Q26. UBS expected the GGR growth momentum to rebound in August, after a mild slowdown in June and July due to one-off headwinds from the World Cup. Amid a stable competitive environment and increased focus on cost optimization, the broker believed margin pressure across the industry will gradually ease in 2H26. In terms of market share, the broker lowered its market share forecast for SJM HOLDINGS (00880.HK) to reflect weaker-than-expected absorption of satellite casino customers. Meanwhile, supported by favorable premium demand, the broker expected Wynn to continue gaining mass GGR share through 2027. Based on the above changes and incorporating 1Q results, the broker updated its forecasts for related gaming stocks. The TP for MGM Resorts International (MGM.US) was raised from USD39 to USD50, with rating maintained at Neutral; the TP for Las Vegas Sands Corp. (LVS.US) was lowered from USD69 to USD62, with rating maintained at Neutral; the TP for Wynn Resorts, Limited (WYNN.US) was kept unchanged at USD146, with Buy rating reiterated. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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