{"id":195702,"date":"2021-12-16T10:55:24","date_gmt":"2021-12-16T18:55:24","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=195702"},"modified":"2021-12-16T12:00:04","modified_gmt":"2021-12-16T20:00:04","slug":"macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/","title":{"rendered":"Macau Stocks Could Experience Material Rebound in 2022, Says Morgan Stanley"},"content":{"rendered":"

Casino operators with significant Macau footprints are among 2021’s worst-performing gaming equities, but a slew of disappointing showings this year could set the stage for 2022 rallies.<\/p>\n

\"Macau
Macau’s Cotai Strip, seen above. Morgan Stanley says Macau casino stocks could rebound next year. (Image: Times of India<\/em>)<\/figcaption><\/figure>\n

In a note out earlier this week, Morgan Stanley analysts draw parallels between the current of state of affairs for Macau casino stocks and 2016. At the time the report was published, the combined market capitalization of concessionaires in the special administrative region (SAR) was $58 billion, barely above the $53 billion seen at the start of 2016.<\/p>\n

The January 2016 market capitalization figure is the second-worst on record for Macau operators following mid-2011, which was soon after the worst days of the global financial crisis. It remains to be seen if history will repeat in terms of a rebound, but analysts are encouraged by<\/a> 2022 prospects for Macau operators.<\/p>\n

We see a similar trend in 2022, where year-on-year growth will accelerate even though it\u2019s still at a lower level than 2019. This should drive outperformance in 2022,\u201d<\/strong> said the Morgan Stanley analysts.<\/p><\/blockquote>\n

The bank’s assessment comes soon after the arrest of former Suncity boss Alvin Chau, which analysts believe marks the end of the Macau VIP junket era.<\/p>\n

Macau Stocks Looking to Shake Laggard Status<\/h2>\n

Like their domestically focused counterparts, Macau casino stocks were drubbed at the onset of the coronavirus pandemic in 2020. While the SAR’s shutdown of gaming properties was shorter than what was seen in the US, the subsequent rebound in gaming equities was more intense for domestic names.<\/p>\n

Said another way, Macau casino equities<\/a> are notching a second consecutive year of underperformance relative to not only US counterparts, but Hong Kong’s Hang Seng Index as well. The Hong Kong comparison is relevant because that’s the listing domicile for Macau concessionaires.<\/p>\n

Using the aforementioned 2016 precedent as a guide, Morgan Stanley sees an opportunity for Macau operators to shed their laggard ways in 2022. GGR growth next year should drive outperformance seen in the past, according to the analyst.<\/strong><\/p>\n

“Macau stocks\u2019 market cap bottomed in January 2016, roughly 12 months after GGR growth year-on-year bottomed at -50% in early 2015,\u201d said the bank.\u00a0 \u201cBut by January 2016, GGR growth rate was -20% and it was visible at that time that year-on-year would turn positive sometime in the later part of 2016. This drove a material stock price rebound of 26% year-on-year in 2016.”<\/p>\n

Work to Be Done<\/h2>\n

Las Vegas Sands (NYSE:LVS) and Wynn Resorts (NASDAQ:WYNN) — the most Macau-centric US-based gaming companies — are off an average of 33.14 percent year-to-date.<\/p>\n

Those names and rivals are being dragged lower by lingering travel restrictions, lack of clarity on 2022 license renewal, and heightened regulatory fears.<\/p>\n

Each of these events will provide clarity even if the Macau Chief Executive temporarily extends the licenses beyond June 2022, which we expect could be announced by in 1Q22,\u201d <\/strong>according to Morgan Stanley.<\/p><\/blockquote>\n

Some market observers believe the reshaping of the Macau market to more premium mass in the wake of the Suncity fiasco will benefit Sands due to its focus on mass and premium mass players. Likewise, analysts see an opportunity for Wynn to rebound<\/a> if the company adapts to a new look in Macau and broadens its US revenue set.<\/p>\n","protected":false},"excerpt":{"rendered":"

Casino operators with significant Macau footprints are among 2021’s worst-performing gaming equities, but a slew of disappointing showings this year could set the stage for 2022 rallies. In a note out earlier this week, Morgan Stanley analysts draw parallels between the current of state of affairs for Macau casino stocks and 2016. At the time […]<\/p>\n","protected":false},"author":46,"featured_media":195703,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,10],"tags":[],"acf":[],"yoast_head":"\nMacau Casino Stocks Poised For 2022 Rebound, Says Morgan Stanley<\/title>\n<meta name=\"description\" content=\"Macau casino stocks looking like 2016 could portend big 2022 rebound.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Macau Casino Stocks Poised For 2022 Rebound, Says Morgan Stanley\" \/>\n<meta property=\"og:description\" content=\"Macau casino stocks looking like 2016 could portend big 2022 rebound.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2021-12-16T18:55:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-12-16T20:00:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/cotai.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"900\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/\",\"url\":\"https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/\",\"name\":\"Macau Casino Stocks Poised For 2022 Rebound, Says Morgan Stanley\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/cotai.jpg\",\"datePublished\":\"2021-12-16T18:55:24+00:00\",\"dateModified\":\"2021-12-16T20:00:04+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Macau casino stocks looking like 2016 could portend big 2022 rebound.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/cotai.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/cotai.jpg\",\"width\":1200,\"height\":900,\"caption\":\"Macau's Cotai Strip. Morgan Stanley says Macau casino stocks could rebound next year. (Image: Times of India)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Macau Stocks Could Experience Material Rebound in 2022, Says Morgan Stanley\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Macau Casino Stocks Poised For 2022 Rebound, Says Morgan Stanley","description":"Macau casino stocks looking like 2016 could portend big 2022 rebound.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/","og_locale":"en_US","og_type":"article","og_title":"Macau Casino Stocks Poised For 2022 Rebound, Says Morgan Stanley","og_description":"Macau casino stocks looking like 2016 could portend big 2022 rebound.","og_url":"https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2021-12-16T18:55:24+00:00","article_modified_time":"2021-12-16T20:00:04+00:00","og_image":[{"width":1200,"height":900,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/cotai.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/","url":"https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/","name":"Macau Casino Stocks Poised For 2022 Rebound, Says Morgan Stanley","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/cotai.jpg","datePublished":"2021-12-16T18:55:24+00:00","dateModified":"2021-12-16T20:00:04+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Macau casino stocks looking like 2016 could portend big 2022 rebound.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/cotai.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/cotai.jpg","width":1200,"height":900,"caption":"Macau's Cotai Strip. Morgan Stanley says Macau casino stocks could rebound next year. (Image: Times of India)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/macau-casino-stocks-poised-for-2022-rebound-says-morgan-stanley\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"Macau Stocks Could Experience Material Rebound in 2022, Says Morgan Stanley"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/195702"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=195702"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/195702\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/195703"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=195702"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=195702"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=195702"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}