Which Casino Stocks Are Your Best Bets?
Wells Fargo analysts warn of a slowdown in the gaming industry. They expect management teams will have little material evidence to flag just yet.
Caesars Entertainment, MGM Resorts and Wynn Resort could see upside from the Las Vegas Strip. Las Las Vitesse Sands and MGM will post losses on their Macau operations. The growth of regional gaming revenue has started to decelerate.
The analysts cut their price targets for Boyd Gaming, Caesars, Penn National Gaming and Red Rock Resorts.
Analysts' top picks are Boyd and Caesars. They expect Boyd to keep a conservative balance sheet with 2.5 to 3 times net leverage.
According to Mr. Cawthon, Casino Stocks are the best bets because of their low valuation and 18% yield.
There are three casino stocks that are good bets for investors.
A Las Vegas Strip asset sale could reduce leverage by 0.5 times.