Macau Casino Stocks Have More Upside Potential, Says Analyst
Posted on: August 25, 2025, 11:57h.
Last updated on: August 25, 2025, 12:35h.
- Jefferies prefers Sands, Wynn among US-based Macau operators
- Gross gaming revenue (GGR) data supportive of further upside
- Last week was a banner period of GGR increases for Macau casinos
Against the backdrop of resurgent gross gaming revenue (GGR) data, Macau casino stocks are in rally mode and more upside could be on the way, says at least one analyst.
In a new report to clients, Jefferies analyst Anne Ling points out that channel checks indicate that for the week ending August 24, GGR in the world’s largest casino hub surged 25% year over year and 9% from the prior week. Other research firms estimate it was the best non-Golden Week seven-day span since before the start of the coronavirus pandemic. The Jefferies analyst adds that August GGR growth could come in at “a respectable low- to mid-teens percentage.”
The August strength is impressive because it extends a recent trend of bullishness for Macau concessionaires. July GGR of $2.74 billion represented a 19% year-over-year increase and the special administrative region’s (SAR) best monthly tally since the pandemic, breaking the high watermark set in June.
Concessionaires are expected to deliver earnings before interest, taxes, depreciation, and amortization (EBITDA) numbers, further supporting the notion that Macau casino stocks are inexpensive relative to EBITDA improvements.
Sands, Wynn Among Preferred Macau Names
Ling said the top ideas among the six Macau casino stocks are Galaxy Entertainment, which trades in Hong Kong, Las Vegas Sands (NYSE: LVS), and Wynn Resorts (NASDAQ: WYNN).
In a strong growth market, we believe Galaxy can capitalize on its scale and ramp in its Cotai assets, while LVS can gain ground given its change in strategy,” observes the analyst. “WYNN is a beneficiary of premium segment strength and execution of its upcoming capital projects. In short, the current market position benefits from capital leverage to the market’s growth.”
She adds that there’s been a notable shift in Macau with premium-mass players leading the rebound. That’s beneficial to Galaxy and Wynn. Sands’ Londoner Macau casino resort helps that operator tap into that demographic, too. Ling also points out that valuations remain undemanding on Hong Kong-listed Macau casino stocks, which could be a source of allure for investors considering shares of Galaxy and Sands China.
“With all HK traded names below 10X 2026 EBITDA, we continue to favor Galaxy and SCL/LVS given the upward bias in estimates,” she wrote.
Wynn Can Continue Upside Trajectory
Among the various Macau casino stocks, Wynn may be the one that’s most priced for perfection due to a 36.66% year-to-date gain – one that may imply little margin for error.
On the other hand, that rally may be the result of market participants renewing interest in Macau gaming equities as well as a gradual pricing in of Wynn’s upcoming opportunity set in the United Arab Emirates (UAE). Ling believes the shares could have more upside ahead.
“Although WYNN appears to be more fully valued from the US side at 11.2X 2026E EBITDA, we believe it can continue to move higher on rising Macau estimates and the forthcoming project in the UAE, which is currently not in Street numbers or valuations directly,” concludes the Jefferies analyst.
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