Melco Resorts and Entertainment Ltd (MLCO)

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FYI...

DJ MARKET TALK:Melco Crown May Beat Rivals To Cotai Via Studio City-CS
03/06/2011 11:06 | Galaxy Enter. Group

1006 GMT [Dow Jones] Credit Suisse's new pecking order in Macau is Melco Crown (MPEL), SJM (0880.HK), Sands China (1928.HK), MGM China (2282.HK), Wynn Macau (1128.HK) and then Galaxy (0027.HK). It keeps the first 3 at Overweight, the last 2 Neutral and starts newly listed MGM China at Neutral. "While MGM China, SJM, and Wynn Macau have all applied to the Macau government to start new projects in Cotai, we believe MPEL may surprise by opening a new project ahead of the three operators mentioned," writes analyst Gabriel Chan. Melco Crown is "likely to get Macao Studio City which, in our view, will be a powerful re-rating catalyst, countering concerns about the lack of future growth drivers." Macao Studio City is a third-party casino project for which MPEL obtained the rights to operate the casino business on a revenue sharing basis. The project has been on hold amid a dispute among its stakeholders. It raises target on MPEL to US$14.60 from US$12.70, without pricing in any earnings potential from Studio City or a new hotel tower at MPEL's City of Dreams property. MPEL closed 0.2% higher at US$11.84 in the U.S. Thursday. ([e-mail])


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