Melco Resorts & Entertainment Limited (NASDAQ:MLCO) is one of the Stocks to Buy Under $10 with High Potential. On January 15, Ds Kim from J.P. Morgan downgraded the stock from Buy to Hold and also lowered the price target from $11 to $7.7. Earlier on January 13, Karl Choi from Bank of America Securities reiterated a Hold rating on the stock and lowered the price target from $9.5 to $7.9.
Analysts at BofA note that the reduced price target and a cautious rating on Melco Resorts & Entertainment Limited (NASDAQ:MLCO) is mainly due to the firm’s neutral stance on the Macau gaming sector. The firm expects the gross gaming revenue to slow down in 2026. BofA noted that although the stock trades at a cheaper valuation, the lower projected dividend yield balances its outlook. The firm advised investors to be cautious and adopt a selective approach for the Macau gaming sector for the first half of 2026.
Analysts from J.P. Morgan also noted being selective in the gaming sector. The firm sees risk regarding consensus estimates for the stock. The firm highlighted that they are waiting for the company to show traction.
Melco Resorts & Entertainment Limited (NASDAQ:MLCO) develops and operates resort facilities, hotels, and casinos in the Philippines and Macau. The company’s three Macau casinos include City of Dreams, Studio City, and Altira Macau.
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Disclosure: None. This article is originally published at Insider Monkey.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source sg.finance.yahoo.com ’
