DJ Crown Cheered by Macau Revenues Stabilizing, Says UBS -- Market Talk
2211 GMT [Dow Jones]--UBS drops its price target for casino operator Crown Resorts
(CWN.AU) by 4.1% to A$15.15/share after putting a lower valuation on its Melco Crown
Entertainment (MPEL) joint venture in Macau. However, the broker says the outlook for
gambling in Macau appears better than it has for some time. "In Macau we have been
seeing more concrete signs of stabilization in the mass and premium mass segments since
2Q 2015," analyst Sam Theodore says. UBS thinks revenue could grow 4% on-quarter in
3Q 2015--representing the first sequential increase since 1Q 2014. The broker says local
policies have become more accommodative, citing the relaxation in transit visas and
delays in the full implementation of a smoking ban at venues. "That said, there may
be little the local government can do to directly stimulate demand, though we do not rule
out other positive policy measures such as expanding the Individual Visit Scheme to more
mainland cities," Theodore says. UBS lifts its 2016 and 2017 forecasts for gross
gambling revenue in Macau by 2% and 10%, respectively. It keeps a buy call on Crown,
which was last at A$10.53. ([email protected]; @dwinningWSJ)
(END) Dow Jones Newswires
September 21, 2015 18:11 ET (22:11 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
Tuesday 22 September 2015 08:11:00.000 AEST
CWN Price at posting:
$10.53 Sentiment: Sell Disclosure: Held
