Macau’s casino sector is showing renewed strength, and analysts believe the rally in gaming stocks may still have room to run. According to a recent client note from Jefferies analyst Anne Ling, gross gaming revenue (GGR) in the world’s largest casino market surged 25% year-over-year and 9% week-over-week for the period ending August 24—marking one of the strongest non-holiday stretches since before the pandemic.
Ling projects August GGR growth to land in the low-to-mid teens, building on July’s impressive $2.74 billion haul, which was up 19% year-over-year and set a new post-pandemic benchmark for the region.
With earnings momentum building, Ling sees Macau casino stocks as undervalued relative to expected EBITDA improvements. Among the six major operators, her top picks include Galaxy Entertainment (Hong Kong-listed), Las Vegas Sands (NYSE: LVS), and Wynn Resorts (NASDAQ: WYNN).
“In a strong growth market, Galaxy benefits from scale and Cotai expansion, LVS from strategic repositioning, and Wynn from premium segment strength and upcoming capital projects,” Ling noted.
She also highlighted a shift in Macau’s player base, with premium-mass customers driving the recovery—an encouraging sign for operators like Galaxy, Wynn, and Sands, whose Londoner Macau resort is well-positioned to capture that demographic.
Valuations remain attractive, particularly for Hong Kong-listed names trading below 10x projected 2026 EBITDA. Ling reiterated her preference for Galaxy and Sands China, citing upward revisions in earnings estimates.
As for Wynn, its 36.66% year-to-date stock gain may suggest limited upside, but Ling believes the market hasn’t fully priced in its future growth—especially its forthcoming UAE project, which remains absent from most analyst models.
“Despite WYNN’s fuller valuation at 11.2x 2026E EBITDA, we see continued upside driven by rising Macau forecasts and its UAE expansion,” Ling concluded.
