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Macau’s June GGR: A Potential Jackpot for Gaming Stocks

Home » Macau’s June GGR: A Potential Jackpot for Gaming Stocks

In the high-stakes world of gaming, Macau’s Gross Gaming Revenue (GGR) is the big kahuna, the head honcho, the top dog. And this June, it’s looking like it might just surprise us all and come out tops.

According to Edward Engel, a sharp analyst from Roth MKM, Macau’s GGR for June could potentially be a lekker surprise, especially as China’s recent bout with the coronavirus seems to be on the wane. Now, that’s not too much of a stretch, considering that despite some COVID-19 headwinds, the concessionaires still managed to rake in a whopping $1.93 billion in May GGR.

Engel reckons that the official June GGR report, which will be delivered on July 1, could show a 5% month-over-month increase. Now, that’s not too shabby, hey?

We like MLCO’s quality non-gaming assets, proven by its recent successful launch of non-gaming events, which should offer the most positive earnings surprise in 2Q23,” wrote Credit Suisse analyst Kenneth Fong in a note earlier this week. “This should also benefit the company from a mass-driven recovery ahead, while the sustainability of the ability in attracting new players remains to be seen.”

But why is Macau’s June GGR so important, you ask? Well, it’s not just about the numbers. It’s about the story those numbers tell. The June update could provide analysts with a sense of how things are shaping up for July and August, which are typically two of the busiest months of the year for Macau travel.

Engel is pretty bullish about the outlook for Macau’s gaming revenue in the seventh and eighth months of the year. He’s also got a keen eye on Macau stocks, including Las Vegas Sands (NYSE: LVS). The parent of Sands China operates five integrated resorts in the special administrative region (SAR).

And it’s not just Engel who’s feeling optimistic. Nearly 74% of the analysts that cover the stock have the equivalent of a “buy” rating on it, believing it offers potential upside of 22% relative to the consensus price target.

So, whether you’re a high roller or just a casual observer, keep an eye on Macau’s GGR. It could just be the ace up your sleeve.