Morgan Stanley revises outlook for Macau gaming sector amid GGR slowdown
The brokerage has shifted its sector rating from “Attractive” to “In-Line.”
Macau.- Morgan Stanley has lowered its outlook on Macau’s gaming stocks, projecting that GGR will rise by 6 per cent and EBITDA by 2 per cent in 2026. In a report released on Wednesday, it shifted its sector rating from “Attractive” to “In-Line” due to expectations that year-on-year GGR growth will slow from May and that EBITDA growth will turn negative in the second and third quarters of 2026.
Morgan Stanley analysts attributed the downgraded view to several factors, including softness in base mass play, elevated promotional allowances and ongoing non-gaming expenses. Despite the softer outlook, it believes Macau’s casino GGR will outperform both Singapore and Las Vegas, where growth is expected to reach around 1 per cent.
Regarding individual equities, Morgan Stanley highlighted Sands China and Melco International Development as preferred options, citing stronger growth prospects and expected market gains.
