The World Cup’s dampening effect on Macau’s June gross gaming revenue (GGR) has prompted an analyst to trim price targets for Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN).
In a new report to clients, Macquarie analyst Chad Beynon notes that while visitation to the Chinese casino center was sturdy last month, surpassing 20 million visits for the year 18 days sooner than in 2025, that increased visitation didn’t pay off in the form of improved GGR.
In fact, Macau’s June gaming revenue slumped 12% year-over-year and 18% on a sequential basis.
While June is seasonally one of the softer months of the year, and we expect a rebound in demand after the World Cup is over, we do expect downward revisions to near-term GGR forecasts and heightened focus on second-half acceleration.”
Macquarie analyst Chad Beynon
Macau GGR rose 5.5% year-over-year in April and 6.7% in May, respectively, but the June number was flat compared to the year-earlier period and 7% lower on a sequential basis, effectively wiping out any hope of second-quarter upside.
Still Bullish on Sands
Las Vegas Sands’ Sands China runs five Macau casino hotels, making it the largest operator in the special administrative region (SAR). Those venues represent five of the company’s six properties. As such, the stock is vulnerable to Macau GGR compression.
Beynon lowered his price target on the Venetian Macau operator to $66 from $68 with the new price objective implying upside of about 40% from current levels. He rates the stock “outperform,” signaling a mostly constructive view on the name.
Las Vegas Sands’ subsidiary, Sands China, operates five integrated resorts in Macau, cementing its status as the largest operator in the special administrative region (SAR). Because those venues account for five of the parent company’s six global properties, the stock is highly sensitive to any compression in Macau’s GGR.
Beynon lowered his price target on the Venetian Macao operator to $66 from $68, though the new objective still implies a robust 40% upside from current levels. He maintains an “outperform” rating on the stock, signaling that his long-term view on the gaming giant remains firmly constructive.
“We believe LVS remains a well-positioned large-cap investment given insulation from recent risks (predictions markets, gas price inputs, etc.), benefits from global wealth and experiential trends, and reasonable valuation,” notes the analyst.
He also highlighted Marina Bay Sands in Singapore, the world’s most profitable casino, as a “trophy asset” and one that’s delivering growth that justifies the operator’s $8 billion expansion.
Wynn Hit With Slight PT Cut, Too
Wynn Resorts operates two integrated resorts in Macau, but the SAR accounts for the lion’s share of the operator’s revenue and EBITDA. Consequently, the stock remains highly sensitive to any deceleration in the enclave’s GGR.
While Beynon maintains an “outperform” rating on Wynn, he shaved his price target to $143 from $145—a valuation that still implies a massive 49% upside. The analyst noted that Wynn is cushioned by several distinct catalysts, including robust luxury pricing power on the Las Vegas Strip and the highly anticipated development of Wynn Al Marjan Island in the United Arab Emirates (UAE).
“We see several structural tailwinds including: (1) MSD+ Macau growth driven by premium mass; (2) continued Las Vegas outperformance supported by luxury pricing power; (3) a meaningful long-dated inflection from Al Marjan; and (4) a capital-friendly allocation strategy supported by strong liquidity,” the Macquarie analyst concluded.
Source link
