2023-06-20 08:36:51 ET
Melco Resorts & Entertainment ( NASDAQ: MLCO ) was upped to Buy at Credit Suisse on Tuesday as summer holidays and Chinese policy moves stand out as positive catalysts.
Equity analyst Kennth 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.”
Summer holidays, the possibility of policy stimulus, and Q2 earnings were each cited as potential drivers of upside for shares in coming months. Melco ( MLCO ) stock moved 4.15% higher in premarket action on Tuesday.
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Melco Resorts raised to Buy due to attractive valuation, upcoming catalysts