Gambling in Macau is coming back strongly after reports noted that gross gaming revenue soared over 82% in January on a year-over-year basis. For reference, forecasters were expecting a 37% jump. This was undoubtedly attributable to the lifting of most COVID-19 restrictions.
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It’s worth noting that analyst Joseph Greff from J.P. Morgan (NYSE:JPM) believes that casino stocks with exposure to Macau are a great way to play the China reopening trade, as their valuation is currently below historical averages.
However, Wall Street as a whole isn’t too enthusiastic about the major casino stocks with exposure to China, as per the graphic above. Indeed, MGM Resorts (NYSE:MGM) is the only stock with double-digit upside potential at 24.22%. In contrast, analyst consensus expects over 5% downside for Wynn Resorts (NASDAQ:WYNN) thanks to its price target of $97 per share.
