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.