Two Wall Street analysts lowered expectations for the gaming sector ahead of third-quarter earnings, pointing to pressure in Las Vegas and Macau while describing regional casinos and Las Vegas locals businesses as relatively steadier. The views come from research notes issued October 20 by JPMorgan analyst Daniel Politzer and Truist analyst Barry Jonas, as summarized by CDC Gaming.
Politzer's assessment was the more guarded of the two. His note said conditions were difficult across the sector and treated companies with heavy exposure to the Las Vegas Strip, Macau or online gaming as facing the greatest near-term challenges. Jonas also described gaming as out of favor among consumer stocks, although he saw stronger underlying trends in regional markets, locals casinos and selected digital businesses.
The caution translated into lower equity targets rather than blanket rating downgrades. JPMorgan reduced its target for MGM Resorts to $42 from $53 while keeping an Overweight rating, according to a market-news report carried by TipRanks and The Fly. Truist cut its target for Gaming and Leisure Properties to $55 from $60 and maintained a Buy rating, a change reported separately through the same market feed.
The two notes differed in emphasis. Politzer favored regional operators and Las Vegas locals over businesses tied closely to destination travel, while Jonas highlighted stable regional fundamentals and real-estate cash flows. Both saw uncertainty around digital gaming, where prediction-market competition is adding another variable to sports-betting forecasts.
These figures are analyst estimates and price targets, not company results or guarantees of future performance. The coming earnings reports will show whether the cautious assumptions match operating results, and the retained positive ratings indicate that a lower target does not necessarily amount to a negative long-term view.
