On January 15, Ds Kim from J.P. Morgan downgraded Melco Resorts & Entertainment Limited (NASDAQ:MLCO) from Buy to Hold. The analyst also reduced the price target from $11 to $7.7.
Two days earlier, on January 13, Karl Choi from Bank of America Securities reiterated a Hold rating on the stock. Choi lowered the price target from $9.5 to $7.9.
Bank of America analysts stated their cautious stance stems from a neutral view on the Macau gaming sector. They expect gross gaming revenue to slow in 2026. The firm noted that while the stock trades at a cheaper valuation, a lower projected dividend yield balances the outlook. They advised investors to be cautious and adopt a selective approach for the Macau gaming sector in the first half of 2026.
J.P. Morgan analysts also emphasized being selective in the gaming sector. The firm sees risk regarding consensus estimates for the stock. They highlighted that they are waiting for the company to show traction.
Melco Resorts & Entertainment Limited develops and operates resort facilities, hotels, and casinos in the Philippines and Macau. Its three Macau casinos are City of Dreams, Studio City, and Altira Macau.