Yahoo Finance Worries on China Travel Slam Casino Stocks Again
By Kim Khan
Investing.com - Casino stocks with exposure to Macau gaming got another drubbing Monday as worries about the economic impact of the coronavirus pushed investors out of risk assets in a big way.
Wynn Resorts (NASDAQ:WYNN) kept getting hit by the selling, no surprise as it has three properties in Macua that account for about 75% of its revenue.
Shares fell 7.6% in morning trading and are down about 13% in the last five sessions.
Bank of America (NYSE:BAC) Securities downgraded Wynn to neutral from buy on concerns about how China’s restrictions on travel would hurt business. It lowered its price target on shares to $150 from $160.
"Understandably, the Macau-focused gaming names have traded off more than the broader market as they are 1) highly exposed to domestic Chinese travel, 2) the timing is concurrent with Chinese New Year," BofA analyst Shaun Kelley said.
Las Vegas Sands (NYSE:LVS) dropped 6.8%, while MGM Resorts International (NYSE:MGM) lost 4%.
The China trouble overshadowed what was a positive article by Barron’s for the gaming sector on the “huge opportunity” in legalized U.S. sports betting.
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