Wall Street Analysts’ Outlook Positive For Melco Crown



Positive outlook

Melco Crown Entertainment’s (MPEL) 52-week low is $21.04, and its 52-week high is $45.70. MPEL has a 200-day moving average of $29.83. As of January 9, 2015, MPEL’s market cap stood at $13,298 million.

The above chart shows the ratings given by some Wall Street firms covering this company. Four out of 15 analysts rated the stock as neutral, while 12 gave the stock a buy rating. The mean target price of MPEL by these 15 brokers is $32.38.

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Broker ratings 

Analysts at JPMorgan Chase (JPM) downgraded shares of MPEL from an overweight rating to a neutral rating in a research note dated November 7, 2014. They have a $27 price target on the stock, down from $29. Analysts at Deutsche Bank (DB) gave MPEL buy rating with a target price of $29.

Morgan Stanley (MS) upgraded MPEL shares to an overweight rating in a research note issued to investors on January 5, 2015, with a revised target price of $28. Analysts at Morgan Stanley noted that the opening of new properties in Macau in 2015 will in part drive the growth of Macau casinos: “The incremental [increase in] hotel rooms should help premium mass revenue (as overnight visitors tend to gamble more than day trippers), and potential extension of credit by casinos should help VIP revenue increase as well.”

Investors interested in this entertainment sector can consider ETFs, such as the Consumer Discretionary Select Sector SPDR Fund (XLY), which tracks the performance of stocks in the hotel, media, leisure, restaurants, retailing, and media.


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