Summary
Morgan Stanley’s analysis reveals that Melco Resorts & Entertainment and MGM China are poised to outperform other Macau operators in their 2025 EBITDA estimates. The investment bank conducted a comparative study of Macau’s six concessionaires, assessing their growth potential against current market conditions. Analyst Praveen Choudhary noted that while some operators are expected to gain market share, MGM could maintain its EBITDA share, positioning it favourably for the upcoming year.
Melco, benefitting from the reopening of its residency show “House of Dancing Water”, may also see a boost in growth. Analysts suggest that the current outlook favours Melco and MGM stocks due to their stronger potential in 2025 amidst significant competition.
Key Points
- Morgan Stanley’s report highlights Melco and MGM as likely EBITDA outperformers in Macau for 2025.
- The research compares current EBITDA with growth expectations for each major operator.
- Sands China, SJM, and Galaxy are expected to gain market share, while MGM may maintain its position.
- Melco’s recent show reopening could contribute positively to its EBITDA growth.
- The analysis suggests a preference for investing in Melco and MGM stocks based on their potential for growth amidst competition.
Why should I read this?
If you’re keeping an eye on the gaming industry in Macau or considering investments in this sector, this article is a must-read! It breaks down complex financial forecasts in a way that highlights who’s set to outshine others and why. Save yourself the legwork—we’ve sifted through the details so you don’t have to, giving you the essentials on the players that could shape the market in 2025.
