Risks to Consider <\/span><\/h2>\nLoosening travel policies is an obvious positive move for Melco and other Macau operators. But the environment isn’t risk-free. A recent uptick in coronavirus cases in the Jilin province could compel Beijing to keep tourist restrictions in place. However, Jilin isn’t close to regions that serve as passageways to Macau.<\/span><\/p>\nAdditionally, there’s the risk that the Chinese economy \u2013 the world’s second-largest \u2013 will be slow to rebound in the wake of COVID-19. Specific to Melco, should Beijing renew its anti-corruption fight targeting Macau, that would mean another headwind<\/strong>.<\/span><\/p>\n\u201cPresident Xi Jinping has instigated an anti-corruption\/graft campaign that has had, and continues to have, a negative effect on Macau gross gaming revenue,\u201d said Bain. \u201cShould that campaign re-intensify, we see additional risks to our Macau Market forecast, and therefore our MLCO forecast.\u201d<\/span><\/p>\nThe analyst has a $28 price target on the stock, implying 83 percent upside from where it trades at this writing<\/strong>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"Melco Resorts & Entertainment (NASDAQ:MLCO) is being tabbed as the \u201cbest Macau name\u201d by Roth Capital analyst David Bain. He notes that loosening of travel and visa restrictions hindering the gaming hub since the onset of the coronavirus could soon be relaxed. Melco, controlled by Lawrence Ho, is one of the largest operators in the […]<\/p>\n","protected":false},"author":46,"featured_media":135897,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,10],"tags":[],"acf":[],"yoast_head":"\n
Melco Resorts Is a Preferred Macau Stock, But Risks Remain<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n