Macau (MNA) – Melco and Wynn stocks are seen as outperforming the market, while MGM, Sands and Galaxy are in-line and SJM is seen as underperforming, an analysis by research firm Bernstein on gaming operators showed.
According to the research, Wynn and Melco’s outperforming trends rely on a ‘focus much more on the premium end of the market.’
The strategy of Wynn is based on an ‘extensive VIP operation and premium mass operation,’ while Melco ‘has been a strong leader in premium mass especially the high end of premium mass in conjunction with strong brand loyalty,’ the report says.
On the other end, SJM is the only big operator whose stocks are seen as underperforming because of an aging customer base and an offer not reaching sophisticated premium customers. The analysis of Bernstein also states that the Cotai project does not seem capable of reversing this trend as is trying to ‘cater to all segments in the market.’
Galaxy is seen as performing in-line with the market thanks to strength in ‘VIP and growing prowess in premium mass.’
Sands, with the same performance qualification, will need to keep pushing to renovate its customer base, and Cotai Central ‘repositioning is critical.’
Regarding MGM, also in-line with the market, ‘execution of MGM Cotai is all that matters.’