 |
|
  |
2009-7-3 12:44:00 p.m. HKT, XFNA
DJ MARKET TALK: CS Downgrades Melco; Concerns Over Macau Plays
|
| |
| 1230 [Dow Jones] STOCK CALL: Credit Suisse downgrades Melco International (0200.HK) to Underperform from Neutral, lowers target price to HK$3.40 from HK$6.00, due to weaker-than-expected debut of City of Dreams, leading house to lower FY10-11 earnings forecast by 59%-75%. Adds, broader implications for Macau gaming sector, as investors "may become more skeptical about putting new money into new casino projects." House also concerned price war would be extended to mass-market segment; while raising junket commission rate further will only increase risk exposures, casinos may offer more freebies or even rebates to mass-market players, thus lowering sector's overall profitability. Shares off 5.0% at HK$3.96; peers Galaxy Entertainment (0027.HK) down 2.4% at HK$2.00, SJM Holdings (0880.HK) down 1.4% at HK$2.80.(RLI) Contact us in Hong Kong. 852 2802 7002; MarketTalk@dowjones.com
(Delayed by 1 hour)
-0-
Copyright (c) 2009 Dow Jones & Company, Inc. |
| |
News Provided by XFNA |
| |
|
| Copyright(C) AASTOCKS.com Limited 2000. All rights reserved |
| |
|
|
|
