Melco Resorts & Entertainment initiated with a Positive at Susquehanna

Susquehanna analyst Joseph Stauff initiated coverage of Melco Resorts & Entertainment with a Positive rating and $15 price target. The analyst initiated the Macau-focused casino stocks with Positive ratings and a bullish industry outlook. The consensus re-opening pace in Macau “leaves notable room for upward revisions given such low investor sentiment magnified by negative Chinese macro data,” the analyst tells investors in a research note. The firm sees Chinese gaming demand outstripping macro headwinds and believes visitation is likely to adjust higher as transportation infrastructure bottlenecks clear. Susquehanna believes the stocks will move together on the pace of Macau’s re-opening.