Analysts Expect Upside in Melco Resorts (MLCO) Despite Gaming Revenue Growth Slowdown

Melco Resorts & Entertainment Limited (NASDAQ:MLCO) is 1 of the 10 Cheap Stocks with Huge Upside Potential. Texas Capital initiated sum of Melco Resorts & Entertainment Limited (NASDAQ:MLCO) banal connected January 22 with a Buy standing and a $11.5 terms target. Analysts judge the company’s unsocial non-gaming offerings are a cardinal origin successful its maturation story, with the Macau marketplace gross gaming gross closing successful connected 2019 levels.

In opposition to Texas Capital, connected January 15, the banal was downgraded by JPMorgan from Overweight to Hold. JPMorgan expert DS Kim lowered the firm’s terms people from $11 to $7.7, suggesting a further 25.61% upside from the existent levels. The steadfast noted that it is taking a much selective attack successful the abbreviated word toward Macau gaming stocks. For the institution specifically, JPMorgan sees downside hazard to statement estimates. The steadfast besides noted the deficiency of dividend support. In a probe enactment to investors, analysts added that Melco Resorts’ margins show wide and sustained improvement, and the banal remains successful ‘show-me’ territory for investors.

Bank of America expert Karl Choi besides reduced the terms people for the banal from $9.5 to $7.9 connected January 13 and reaffirmed his Hold rating. The adjusted terms people offers a further 28.87% upside from the existent levels. The expert said the people terms revision reflects a much selective presumption of Macau gaming stocks up of an expected slowdown successful gross gaming gross maturation successful 2026.

Melco Resorts & Entertainment Limited (NASDAQ:MLCO) operates arsenic a developer, owner, and relation of casino gaming and edifice facilities successful Europe and Asia. The institution operates and owns City of Dreams, restaurants and bars, suites and villas, retail outlets, recreation and leisure facilities, and a bedewed signifier show theater. It was founded successful 2004 and is headquartered successful Central, Hong Kong.

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Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.