Long-term tailwinds offset short-term volatility for Melco Resorts in ...

After an average 82% runup in share price since the fourth quarter of 2016 for the six narrow-moat Macau gaming names we cover, we think the Macau gaming sector is no longer undervalued from a long-term investment perspective. After a review of prospective gross gaming revenue growth and margins over the next decade, we find the shares of Galaxy Entertainment, Wynn Macau, Wynn Resorts (70% of EBITDA from Macau), Melco Resorts and Entertainment, and Las Vegas Sands (55%) overvalued, as the marke...