Content Writer: Janice Chew • Thursday, 26/01/2026 - 22:59:36 - PM
Seaport Research Partners has marginally reduced target prices for the majority of gaming stocks it covers, citing slowing growth trends in both Macau and Las Vegas that are tempering investor expectations. The adjustment affects nearly the entire coverage universe — including big names like Las Vegas Sands, MGM Resorts, Melco Resorts, Wynn Resorts, MGM China, Sands China, SJM Holdings and Wynn Macau — with Galaxy Entertainment Group the only exception to the downward revision.
Important contributors to Seaport’s reassessment include moderating revenue growth in Macau toward the end of 2025 and elevated operating costs and reinvestment spending that have pressured margins in the region’s premium and VIP segments. While Macau’s gross gaming revenue still grew by double digits in the fourth quarter, the expansion was less robust than consensus forecasts, and growth recently showed signs of slowing compared with prior periods.
In Las Vegas, mixed signals have also influenced sentiment. Some operators are facing headwinds from higher costs and slower yield on investment, which in turn affects broader investor appetite for gaming equities exposed to the U.S. market. Seaport’s note suggests company-specific factors and slowing momentum in Las Vegas contributed to the pricing adjustments.
Despite the cuts, Seaport’s analysts argue that valuation levels for Macau-exposed stocks may be attractive relative to historical norms, as many names over-corrected in late 2025. They view the discounted valuations as offering a favourable risk-reward profile for long-term investors willing to accept China macro risk and geopolitical uncertainties.
Interestingly, other recent analysis underscores a nuanced view of the Macau gaming market: some forecasts from Seaport and others anticipate continued growth in early 2026, with gross gaming revenue expected to rise significantly year-on-year, particularly through the first quarter, although this is tied to holiday travel and easier comparative baselines from 2025.
Broader market commentary from other analysts like JPMorgan also points to a “cooling” of Macau revenue growth overall in 2026, particularly in the VIP segment, reflecting caution about sustainability and the pace of recovery.