Macau upturn may be near, MGM to benefit

Analysts are increasingly upbeat over Macau's outlook, saying the lower trend in revenues may be near bottom, with investor sentiment especially positive towards MGM Resorts International. A better than expected outcome in the Golden Week holidays also boosted confidence, underpinned by a 17 percent increase in arrivals despite political protests in Hong Kong.
MGM Resorts International’s investments between Macau and Las Vegas are seen as a balance and are set to gain from the improved sentiment in Macau.
In reported comments Craig-Hallum analyst Bryan Maher upgraded MGM to buy from hold, pointing to MGM's improving fundamental trends with investor sentiment on Macau now at "maximum pessimism," a fact that indicated the bottom was "near".
Maher holds the belief that MGM, the biggest casino operator in Las Vegas, is poised to grow. He said there had been "a healthy increase in gaming revenue of 5 pct in Las Vegas on a trailing 12 months basis."
There have also been signs that the Chinese government may start to scale back its broad "misbehavior" crackdown. Maher said any such move by the central government would be magnified in the Macau market, in a positive way.