Wynn, Galaxy to outperform in 17Q2: MS

Wynn and Galaxy are expected to outperform over MGM, Melco and SJM during the 17Q2 results season, driven by market share gains in both VIP and mass, says Morgan Stanley.

The brokerage in a Thursday note pointed to Galaxy and Wynn Macau to be their top picks (previously Melco) due to more attractive valuation and stronger EBITDA growth, respectively.

“We expect Wynn Macau and Galaxy to show positive sequential EBITDA growth of roughly 1-2 percent each.”

MGM, Melco and SJM and Sands China on the other hand, are set to to show declining EBITDA growth quarter-on-quarter, reflecting market share loss, less exposure to VIP business and higher luck in 17Q1 (in the case of sands), said the brokerage.

The analysts in their note on Thursday also raised their 2017 GGR growth estimate for the industry to 15 percent, up from 12 percent, driven by VIP growth of 16 percent and mass of 14 percent.

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