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JPM: Entry Pt for MO Casinos Still Not Attractive; 'Selective' Investment Strategy Kept; Top Pick GALAXY ENT
2026-07-14 12:30:11
Macau casino stocks have corrected 25% so far this year, vs a 5% decline in the HSI over the same period, JPMorgan said in a research report. However, the broker considered the current entry point is still not attractive enough and therefore maintained a "selective" investment strategy.

The broker noted that due to the drag from the World Cup outweighing favorable seasonal factors, underlying demand remains meager and is below June levels. Short-term data flow remains soft, while 2Q26 results may trigger downward revisions to market forecasts and broadly pessimistic commentary.

JPMorgan maintained its preference ranking for gaming stocks in the following order: GALAXY ENT (00027.HK) (rated Overweight) -> SANDS CHINA LTD (01928.HK) and WYNN MACAU (01128.HK) (both tied with Overweight ratings) -> MGM CHINA (02282.HK) and Melco Resorts & Entertainment Limited (MLCO.US) (both tied with Neutral ratings) -> MELCO INT'L DEV (00200.HK) (rated Underweight) -> SJM HOLDINGS (00880.HK) (rated Underweight).
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