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High gas prices can’t seem to stop Americans from doing anything.In a new note to clients, Bank of America’s Gaming analyst Shaun Kelley writes that Las Vegas trends have been better than expected. Also interesting, visitors from Europe aren’t holding back:
January-February combined gaming revenues in Vegas were up +16%, much better than expected with slot revenues up a solid +4%, and baccarat up +50%. RevPAR was up +10% driven by strong convention visits and attendance. We expect RevPAR to slow in March due to tough convention comps and believe it is likely to run in-line with MGM’s +1-3% expectation. Our channel checks have indicated little change in demand from gas prices and European visitors, however, we expect solid Q2 RevPAR guidance helped by the event calendar.
BofA has buy ratings on MGM Resorts and Wynn Resorts with price targets of $16 and $140, respectively.