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Wynn and Melco top picks for 2018: Bernstein

Outsized VIP gains and premium mass strength saw Wynn, Melco and Galaxy “significantly” outperform its Macau peers, according to Bernstein analysts in a note on Friday.

Bernstein says its 2018 top picks are Melco and Wynn, with Melco’s growth driven by Morpheus at City of Dreams and continued ramp up at Studio City. Wynn will benefit from Wynn Palace's continued mass ramp up and potential increase in its dividend payout, it wrote.

As with a previous note, the brokerage says it expects VIP to show significant growth deceleration in 2018.

“The VIP model is likely to face structural headwinds in the latter part 2018E from instituted cooling measures on Chinese real estate, a credit tightening in China, an increasing regulatory environment in Macau and continued Chinese government focus on capital outflows in China,” said Bernstein.

For 2018, Bernstein says it expects to see total GGR to grow 10 percent year-on-year, with VIP GGR and mass GGR growing 8 percent and 11 percent respectively.

Industry wide EBITDA is set to grow by 10 percent in 2018, it added.

More news from this jurisdiction

MacauWednesday, Jan 24, 2018

The strong VIP growth observed in 2017 would have left Las Vegas Sands Corp. in the dust if it weren’t for the opening of The Parisian, said writers for Motley Fool on Sunday.

MacauWednesday, Jan 24, 2018

Owner and operator of The 13, an upcoming luxury hotel in Macau has announced plans for a capital reorganization that will see a consolidation in shares and a reduction in capital.

MacauWednesday, Jan 24, 2018

More than 30 percent of those seeking help for gambling disorders in 2017 were employed in the casino sector, according to Social Affairs Bureau (IAS) deputy director Hoi Wa Pou.

MacauTuesday, Jan 23, 2018

MGM Cotai has welcomed more than 5,000 team members in the run up to its opening on January 29.

MacauTuesday, Jan 23, 2018

Macau saw another strong week in GGR, attributed to above normal VIP hold rate, and VIP average daily volume, and marginally improved mass, said Bernstein in a note on Monday.

MacauMonday, Jan 22, 2018

Macau police are planning to conduct a violent armed robbery drill at Galaxy Macau in the early hours of Tuesday morning.

MacauFriday, Jan 19, 2018

Two suspects involved in the theft of casino chips from Wynn Macau have been arrested.