not vested
DJ MARKET TALK: CS Raises Macau 2012 GGR Growth Forecast
0845 [Dow Jones] Credit Suisse says the stronger-than-expected gross gambling revenue growth year-to-date has prompted it to revise up its 2012 Macau GGR growth rate projection from 18.9% to 24.6%, resulting in a 3%-10% increase in its FY12 EBITDA projection for the six Macau casino operators, and its new target prices imply 14%-32% potential upside.
It believes March GGR is likely to "surprise the market on the upside," followed by Sands Cotai Central opening in early April. Further, casino operators will start reporting 1Q results in late April, which will drive the next round of earnings upgrades by the street.
The house continues to favour Cotai operators for their stronger earnings growth potential; among them, it notes "we found Galaxy Entertainment's (0027.HK) valuation most attractive, while Melco Crown (6883.HK) may benefit more from Cotai Central opening."
Source: Dow Jones Newswire