The Macau Bulls Are Back as Analyst Ratings Surge at Record Pace
- Sentiment improves after shares lose $110 billion of value
- Credit Suisse sees government stimulus as an `upside option'
Pedestrians walk past the Lisboa Casino, operated by SJM Holdings Ltd., illuminated at night in Macau, China, on Aug. 29.
Photographer: Jerome Favre/BloombergStock analysts are turning bullish on Macau casinos at a record pace, betting that the worst is over for investors as share prices rebound from the cheapest levels in three years.
Sands China Ltd., Galaxy Entertainment Group Ltd. and three of their smaller Hong Kong-listed peers attracted at least eight rating upgrades this month as analysts pointed to a recovery in receipts from small-time gamblers, a bottom in industry earnings and better-than-estimated revenue during the Golden Week holiday. There’s also growing speculation that China will take steps to boost Macau’s economy, an “upside option” that Credit Suisse Group AG says is undervalued by the market.