NEW YORK - Shares of casino operators with properties in China's coastal resort of Macau traded higher Monday as a J.P. Morgan Securities analyst expressed fresh optimism about overall performance of such properties.
Harry Curtis said he was initially concerned that customers would have a hard time getting to Las Vegas Sands Corp. (nyse: LVS - news - people )'s new $2.4 billion Venetian Macao, which opened last month. These fears were dismissed after the analyst experienced bus and ferry trips that took no more than 15 minutes. Curtis anticipates the addition of a ferry terminal on Taipa in October making the resort even more convenient for visitors.
Curtis said he sees the Macau gaming market posting at least 15 percent or more growth until 2012.
Shares of Las Vegas Sands gained $5.78, or 4.5 percent, to $135.43 in morning trading. The stock hit a new 52-week high of $135.50 earlier in the session. It previously traded in a range of $63.68 to $133.37.
Elsewhere in the sector, Curtis said Melco PBL Entertainment Ltd.'s plans to focus more on the VIP market instead of the mass market are likely to be successful. The company is looking to trim its five mass floors at the Crown Macau to two to make space for incremental private rooms.
"The quality of Crown's spa, hotel rooms, restaurants and service is outstanding, which should drive higher junket demand," he wrote in a client note.
Melco's stock added 60 cents, or 3.9 percent, to $16.11. Over the past year, the share have traded between $9.95 and $23.55.
Curtis is also confident MGM Mirage (nyse: MGM - news - people )'s MGM Grand Macau, a $1.1 billion joint venture, will likely open in early December. While some scaffolding remains around the property, Curtis said the last decision left to be made is when to hold the opening party.
Shares of MGM Mirage gained $1.03 to $86.79.
Shares of Wynn Resorts Ltd. (nasdaq: WYNN - news - people ), which operates the Wynn Macau, gained $6.08, or 4.2 percent, to $149.68. The stock has traded in a 52-week range of $65.41 to $151. |
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