Friday, February 25, 2011

Moody's (MCO) Likes Las Vegas Sands (LVS), Wynn (WYNN) in Gaming Sector

While Moody's (MCO) isn't positive on the gaming sector in general, within the industry, they see Las Vegas Sands (LVS) and Wynn (WYNN) better positioned to weather the tough climate.

"The Las Vegas casinos have a high mountain to climb to grow earnings to anywhere near their previous peaks, as citywide hotel room rates remain below 2005 levels," said Peggy Holloway of Moody's.

Moody's likes the two large casinos better because of their stronger global position.

Room rates on low-to-mid tier casinos could come under extreme pressure because of their more localized markets.

The recovery in gaming will be a long one, concluded Moody's, even with the recent performances by some companies in the sector.

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