Macau concession renewals removes overhang for incumbents, says Jefferies

Jefferies analysts led by David Katz and Andrew Lee noted that the Macau government has provided provisional concessions to the six incumbent operators, which they say removes an overhang and should have a positive impact on the group. The concession development is "a modest positive" for Las Vegas Sands (LVS) and Sands China (SCHYY), Wynn Resorts (WYNN) and Wynn Macau (WYNMF), MGM (MGM) and MGM China (MCHVF), Melco Resorts (MLCO), Galaxy (GXYEF) and SJM (SJMHY), but "more important" in their view is the recovery from COVID being pushed out by the recurrence of cases and the zero-tolerance policy in Macau, the analysts said.