MSC - Studio City International: Macau's Growth Streak Comes With A Catch
2025-06-04 00:46:06 ET
Summary
- Maintaining a 'Hold' on Studio City International due to heavy debt load and weak EBIT, despite Macau's visitor recovery.
- Studio City faces fierce competition in Macau and struggles to convert strong visitation into meaningful GGR and profit growth.
- Valuation remains unattractive, trading at a steep EV/EBIT multiple, even after a significant stock price decline.
- Potential upside exists if family-focused tourism accelerates, but debt and negative cash flow overshadow near-term prospects.
While I've been bullish for top-tier players like Boyd Gaming ( BYD ) and even for some locals like Monarch ( MCRI ), I've always had a back seat with Studio City International ( MSC )....
Studio City International: Macau's Growth Streak Comes With A Catch