- For most people, neither flying nor driving to Vegas seems doable.
- The summer casino season is slow anyway.
- Casinos have too much debt from massive expansions and private equity buyouts.
- We’re in a recession.
Morgan Stanley’s casino analyst Joseph Greff sums up the industry’s woes, citing “an unprecedented lack of visitation and spend-per-visitor visibility.” Greff also believes that investors aren’t prepared for “the magnitude and duration” of the struggles.
Yesterday, Greff slashed targets on Las Vegas Sands (LVS), WYNN Casinos (WYNN) and MGM Mirage (MGM):
LVS from $74 to $55, WYNN from $118 to $93, and MGM from $54 to $39.
This graphic from the Wall Street Journal helps explain very simply why casino stocks are crashing: