Melco Crown Entertainment (MPEL) reported negative growth in earnings in 4Q14. It gained momentum in the rolling mass market segment. To learn more, read Part 5 in this series.
After the 4Q14 results were announced, Wall Street analysts reviewed Melco Crown Entertainment’s results. The analysts gave their recommendation and the target price.
The above chart shows the ratings that were given by some of the Wall Street firms. Almost 50% of the analysts mentioned in the above chart rated the stock as “buy.” The remaining 50% rated it as “hold.” The 11 brokers gave a target price of $30. This is 12% higher than its closing share price on February 12. It was $26.76 on February 12.
- Macquarie and BNP Paribas gave a “neutral” or “hold” rating on Melco Crown’s shares. The target price didn’t change. It was $25 and $22, respectively.
- Barclays gave an “overweight” or “buy” rating on Melco Crown’s shares. The rating didn’t change. It gave a revised target price of $29. The target price had been $31.40.
- JP Morgan upgraded the target price on Melco Crown from $26 to $27. Its “neutral” rating didn’t change.
- Union Gaming Research also upgraded the target price on Melco Crown’s shares from $31 to $33. Its “buy” rating didn’t change.
It’s important to note that ~70% of analysts covering Las Vegas Sands (LVS) gave a “buy” or “overweight” rating to its shares. In contrast, ~50% of the analysts covering Wynn Resorts (WYNN) gave a “buy” or “overweight” rating to Wynn Resorts’ shares.
Investors who want invest in the casino space may invest in ETFs like the Consumer Discretionary Select Sector SPDR Fund (XLY) and the VanEck Vectors Gaming ETF (BJK). BJK has an ~8.6% holding in Las Vegas Sands. It has 7% exposure to Wynn Resorts and 4% exposure to Melco Crown Entertainment. XLY has ~1% exposure to Wynn Resorts.