U.S. casinos: Jefferies prefers regional players, sees recovery lying ahead
11/12/2020 12:53
** Jefferies says it favors regional gaming names as they
are positioned well during the COVID-19 pandemic
** Las Vegas market will recover more gradually as return
of large-scale groups, conventions and events will take longer,
says brokerage
** Macau presents a more complex set of issues as onerous
visa application process will hamper visitation - Jefferies
** Although next few quarters could be pressured by
resurging COVID-19 cases, presence of vaccines provides a clear
path to recovery by 2022, says Jefferies
** Brokerage says market will generally look past near-term
weakness toward 2H21 and 2022, which supports a higher PT for
regional companies; expects legalization of digital gaming
throughout 2021
** Jefferies hikes PTs on these companies
Name RIC Old PT New PT
Las Vegas Sands Corp LVS.N $66 $55
Caesars Entertainment Inc CZR.O $85 $68
Wynn Resorts Ltd WYNN.O $107 $82
Penn National Gaming Inc PENN.O $74 $64
Monarch Casino & Resort Inc MCRI.O $65 $57
MGM Resorts International MGM.N $30 $22
Churchill Downs Inc CHDN.O $190 $176
Boyd Gaming Corp BYD.N $45 $39
(Reporting by Shreyasee Raj in Bengaluru)
((Shreyasee.Raj@thomsonreuters.com;))