Macau sector on watch after favorable Morgan Stanley outlook

|By:, SA News Editor

Macau casino stocks broke higher in Hong Kong today after Morgan Stanley lifted its long-term industry-wide revenue forecast and price targets on key names.

"We see wealthier lower-tier cities narrowing the gap of per capita disposable income for urban households with tier-one cities by almost 9 percent by 2030 due to infrastructure development, improved transport networks, favorable government policy and technology spillover," reads the long-term summary from the investment firm.

MS is very positive on Wynn Macau over the short term, with its price target of HKD$21 repping 27% upside potential. Wynn Macau jumped 4.10% in HK today.

Macau casino stocks: Wynn Macau (OTCPK:WYNMF, OTCPK:WYNMY, WYNN), Sands China (OTCPK:SCHYY, OTCPK:SCHYF, LVS), MGM China (OTCPK:MCHVF, OTCPK:MCHVY, MGM), Galaxy Entertainment (OTCPK:GXYEF), SJM Holdings (OTCPK:SJMHF, OTCPK:SJMHY), Melco Resorts & Entertainment (NASDAQ:MLCO).

Related ETF: BJK.

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