Analysts rate Melco Resorts & Entertainment Ltd. (MLCO:NSD) with a Strong Buy rating and a $11 target

Citigroup maintains the $11.5 MLCO stock price target and rates it as Buy.

Based on the MLCO Stock Forecast from 2 analysts, the average analyst MLCO stock price target is USD 11.25 over the next 12 months. Melco Resorts & Entertainment Ltd’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of MLCO stock forecast is Bearish, which is based on 1 positive signal and 9 negative signals. At the last closing, Melco Resorts & Entertainment Ltd’s stock price was USD 6.65Melco Resorts & Entertainment Ltd’s stock price has changed by +0.83% over the past week, +0.77% over the past month and -36.36% over the last year.

 

About Melco Resorts & Entertainment Ltd. (MLCO:NSD):

Melco Resorts & Entertainment Limited develops, owns, and operates casino gaming and resort facilities in Asia and Europe. It owns and operates City of Dreams, an integrated casino resort that has approximately 511 gaming tables and 572 gaming machines; approximately 770 rooms, and suites and villas; approximately 25 restaurants and bars, and 165 retail outlets; and health and fitness clubs, three swimming pools, spa and salons, and banquet and meeting facilities. The company was formerly known as Melco Crown Entertainment Limited and changed its name to Melco Resorts & Entertainment Limited in April 2017. The company was incorporated in 2004 and is headquartered in Central, Hong Kong. Melco Resorts & Entertainment Limited is a subsidiary of Melco Leisure and Entertainment Group Limited.

 

Most Recent Analyst Ratings for MLCO’s stock:

Maintains Citigroup Buy USD 11 » USD 11.5 2022-09-26
Maintains Citigroup Buy USD 12.5 » USD 11 2022-07-05
Downgraded by CICC Research Outperform » Market
Perform 2022-05-09
Target Raised by Citigroup USD 13.5 » USD 15 2022-01-18
Target Lowered by Citigroup USD 14.5 » USD 13.5 2022-01-10
Upgrades Morgan Stanley Overweight USD 13 2021-12-14
Target Lowered by Citigroup Buy USD 24.5 » USD 14.5 2021-09-28
Downgraded by JP Morgan Overweight » Neutral USD 10 2021-09-16
Upgrades HSBC Buy USD 16.9 2021-07-28
Downgrades HSBC Hold USD 21.1 » USD 16.9 2021-07-15
Upgrades CLSA Buy USD 19.96 2021-07-14
Downgraded by Morgan Stanley OW » Equal Weight USD 17 2021-05-24
Downgrades Credit Suisse Underperform USD 14 2021-01-19
Downgraded Macquarie Research Outperform » Neutral USD 20 2021-01-07
Target Raised by JP Morgan Overweight USD 23 » USD 25 2020-11-17
Target Lowered by Roth Capital Buy » Positive USD 35 » USD 30 2020-11-05
Downgrades Credit Suisse Neutral USD 24.6 » USD 18.7 2020-09-21
Target Raised by Roth Capital Buy USD 28 » USD 35 2020-09-16
Initiated by BOCOM International Buy 2020-09-11
Target Raised by UBS Buy USD 19.6 » USD 21.8 2020-06-05
Target Lowered by Nomura Buy USD 33 » USD 27 2020-02-21
Maintains UBS Buy USD 25.6 » USD 26.8 2019-09-13
Maintains JP Morgan & Company Overweight USD 29 » USD 25 2019-09-06
Reiterates Nomura Buy USD 15 2019-08-13
Upgrades Daiwa Securities Outperform » Buy 2019-07-30

 

What we like:

Low volatility:

The annual returns for MLCO stock have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

 

What we don’t like:

Poor risk adjusted returns:

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns:

The average income yield of MLCO stock over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings:

MLCO stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

MLCO stock price is trading high compared to its peers median on a price to book value basis.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow:

The company had negative total cash flow in the most recent four quarters.

Negative free cash flow:

The company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth:

MLCO stock has shown below median earnings growth in the previous 5 years compared to its sector.

Low Revenue Growth:

MLCO stock has shown below median revenue growth in the previous 5 years compared to its sector.