weather icon Clear

Casino stocks down on China worries

Nomura has downgraded several gaming company stocks, trimming Melco’s target price to $16 from $17, Las Vegas Sands to $43 from $47 and Wynn Resorts to $64 from $73.

Analysts say they expect rising risk of demand disappointment with the weakening yuan and slowing Chinese economy.

Most of the companies get more than two-thirds of their revenue from Macau, China’s offshore gambling destination.

On Wednesday, shares of Wynn Resorts Ltd fell $2.80, or 4.74 percent to close at $56.33. Las Vegas Sands Corp. dropped $1.22, or 3.17 percent, to $37.21. Melco Crown Entertainment fell 85 cents, or 5.94 percent, to $13.46. MGM Resorts International lost 53 cents, or 2.7 percent, to close at $19.11.

Up to Tuesday’s close, the Dow Jones U.S. Gambling index had fallen about 31 percent in 12 months. On Wednesday, it lost another 3.27 percent.

The losses came amid another down day on Wall Street. The Dow was off 249 points, the S&P lost 22 points and the Nasdaq lost five points.


Don't miss the big stories. Like us on Facebook.