Bank of America Securities: Macau Gaming Stock's Latest Rating and Target Price (Table) Raises Industry Revenue Forecast for This Year and Next Two Years

The Zhitong Finance App learned that Bank of America Securities released a research report saying that Macau's October Golden Week gaming revenue was strong, indicating that the Macau gaming industry is still resilient, but the industry faces uncertainties in the regulatory environment of the newly appointed Chief Executive.

The bank said it will raise its gaming revenue forecast for this year by 2% to MOP 227 billion, up 24% year on year, to 78% of 2019 level; raise next year's gaming revenue forecast 7% to MOP 230 billion, up 2% year on year. The EBITDA forecast for the industry will increase by 2% in 2024 and 10% in 2025.

Furthermore, the bank expects Macau's gaming revenue to increase 13% year over year in the third quarter, but fall 1% from quarter to quarter, which is in line with seasonal factors. Industry EBITDA is expected to fall 6% quarterly. Among them, it is estimated that Aobo Holdings (00880) is leading the EBITDA growth, with a quarterly increase of about 20%. The EBITDA of most remaining operators may fall quarterly, MGM China (02282) may fall 19%, Bank Entertainment (00027) may fall 10%, and Sands China (01928) may fall 3%.