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2025-12-29 12:56:33 Morgan Stanley released a research report noting that changes in licensing fees for certain casinos could impact EBITDA forecasts for relevant companies, thereby affecting target prices and ratings. After updating its model projections, the broker decided to downgrade MGM CHINA (02282.HK) from Overweight to Equalweight, and drop its target price from $19 to $16.5. Morgan Stanley also upgraded GALAXY ENT (00027.HK) from Equalweight to Overweight, and added its target price from $43 to $44. The broker favored GALAXY ENT and SANDS CHINA LTD (01928.HK) due to their market share gain, lower royalties as a percentage of EBITDA, higher trading volume and dividend increases. Morgan Stanley upgraded GALAXY ENT to Overweight due to higher profit margins driven by licensing fee payments (unlike peers). GALAXY ENT is Macau's only net cash company (supporting higher dividends) with significant upcoming hotel capacity additions. The broker believed that the company's premium valuation will be sustainable. Morgan Stanley maintained an optimistic outlook on casinos, primarily driven by double-digit GGR growth. However, share price performance depends on market share trends, and the broker's views on certain individual stocks may diverge from market consensus. Morgan Stanley favored GALAXY ENT and SANDS CHINA LTD over MGM CHINA and Wynn Macau. The broker kept rating at Underweight for SJM HOLDINGS (00880.HK). ~ AAStocks Financial News Website: www.aastocks.com | |