The Macau SAR government kicked off a public consultation on gaming law revision without timeline on the entire process. JPMorgan saw tighter sector regulation and uncertainties for concessionaires regarding future capital management and operation.
The broker downgraded all Macau gaming shares from Overweight to Underweight/ Neutral. The latest ratings and target prices of casinos are listed in a separate table.
SANDS CHINA LTD (01928.HK) -7.710 (-30.902%) Short selling $404.67M; Ratio 19.783% was downgraded from Overweight to Underweight, with target cut from $39 to $20.
GALAXY ENT (00027.HK) -8.950 (-18.284%) Short selling $497.97M; Ratio 12.505% was downgraded from Overweight to Neutral, with target cut from $77 to $53.
SJM HOLDINGS (00880.HK) -1.650 (-23.438%) Short selling $115.59M; Ratio 24.538% was downgraded from Overweight to Neutral, with target cut from $11 to $6.5.