Published on: August 25, 2025, 11:57 AM.
Updated on: August 25, 2025, 11:57 AM.
- Jefferies identifies Sands and Wynn as top picks among US Macau operators
- Gross gaming revenue (GGR) metrics suggest additional growth potential
- Last week marked a significant surge in GGR for Macau casinos
With the resurgence of gross gaming revenue (GGR) figures, Macau casino stocks are experiencing a robust rally, and one analyst suggests more growth may be imminent.
In her recent client report, Jefferies analyst Anne Ling mentions that channel checks for the week ending August 24 showed a staggering GGR growth of 25% year-over-year and 9% compared to the previous week. Other research firms also affirm that this was the best seven-day non-Golden Week performance since prior to the COVID-19 pandemic. Ling further suggests that GGR growth for August may reach a commendable low to mid-teens percentage.
The impressive performance in August continues a recent trend of optimism for Macau concessionaires. July’s GGR totaled $2.74 billion, marking a 19% increase year-over-year and representing the highest monthly figure for the region since the pandemic, surpassing the record set in June.
Concessionaires are projected to exceed earnings before interest, taxes, depreciation, and amortization (EBITDA) expectations, reinforcing the perception that Macau casino stocks are undervalued when viewed in light of EBITDA growth.
Preferred Choices: Sands and Wynn
Ling highlights Galaxy Entertainment, trading on the Hong Kong exchange, along with Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN) as top recommendations among six Macau casino stocks.
“In a flourishing growth environment, Galaxy stands poised to leverage its extensive operations and expedite development of its Cotai properties, while LVS is set to gain traction with its strategic shifts,” the analyst notes. “WYNN benefits from strengths in the premium market segment and its upcoming capital initiatives. In essence, the current market dynamics leverage capital for growth opportunities.”
Ling observes a distinct shift in Macau, with premium mass players driving the recovery, which is advantageous for Galaxy and Wynn. Sands’ Londoner Macau casino resort also allows it to effectively engage this demographic. Additionally, Ling emphasizes that Hong Kong-listed Macau casino stocks are still relatively undervalued, making them attractive for investors eyeing shares of Galaxy and Sands China.
“With all Hong Kong-traded names trading below 10X 2026 EBITDA, we maintain our preference for Galaxy and SCL/LVS due to the upward trajectory in earnings forecasts,” the analyst states.
Wynn’s Growth Potential Remains Strong
Wynn appears to be the most fully valued among Macau casino stocks, boasting a year-to-date increase of 36.66%, which suggests limited room for fluctuation.
However, this surge may reflect renewed interest from investors in Macau gaming stocks, alongside expectations surrounding Wynn’s future projects in the United Arab Emirates (UAE). Ling is optimistic that there is still potential for the stock to rise further.
“While WYNN seems to be appropriately valued from a U.S. perspective at 11.2X 2026E EBITDA, we believe it can still ascend due to increasing Macau revenue estimates and the forthcoming UAE initiative, which is currently not factored into analysts’ projections or valuations,” concludes the Jefferies analyst.