2023-07-11 11:40:18 ET
Melco Resorts & Entertainment Limited ( NASDAQ: MLCO ) opened the doors to its new luxury resort in Cyprus on Tuesday.
The $659M City of Dreams Mediterranean is one of the largest development projects ever undertaken in Cyprus and is being advertised as the largest casino resort of its kind in Europe. The complex includes a casino, sporting facilities, a family adventure park, an outdoor amphitheater, eight restaurants and bars, and a conference center.
Melco Resorts and Entertainment ( MLCO ) CEO Lawrence Ho said the resort allows Cyprus to unlock new markets in the region and beyond.
On Wall Street, the casino stock was recently upped to Buy at Credit Suisse, with summer holidays and Chinese policy moves cited as positive catalysts. Analyst Kenneth Fong noted that a better than expected recovery in the first half of 2023 as well as a supportive government in Macau should support shares. Additionally, successful non-gaming events thus far in 2023 bolster his confidence in a recovery for the stock given an “undemanding” valuation at present. "We like MLCO's quality non-gaming assets, proven by its recent successful launch of non-gaming events, which should offer the most positive earnings surprise in 2Q23,” Fong told clients. “This should also benefit the company from a mass-driven recovery ahead, while the sustainability of the ability in attracting new players remains to be seen," he added.
In contrast, Seeking Alpha analyst Fade The Market is less bullish due to global recession risk and has a Hold rating on MLCO.
The launch of City of Dreams Mediterranean hit some local resistance. The Pancyprian Federation of Labour and the Democratic Labour Federation of Cyprus have both pushed back again the casino operator over employee benefits.
Shares of Melco Resorts ( MLCO ) rose 1.58% in late morning trading on Tuesday to $12.85.
More on Melco Resorts:
- Growth metrics on Amazon
- Valuation metrics on Melco Resorts
- Seeking Alpha's Quant Rating for Melco Resorts
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Melco Resorts opens Europe's largest casino complex in Cyprus