Last Updated: 19 Sep 2024
Executive Summary
Melco Resorts & Entertainment Ltd. (MLCO) is a casino gaming and resort operator in Asia and Europe. The company's recent financial performance has been impacted by the COVID-19 pandemic, but it is showing signs of recovery. MLCO's stock price has been volatile in recent months, but it has outperformed the broader market over the past year. Analysts are generally positive on the company's long-term prospects, with a consensus price target of $9.33.
Company Overview
Melco Resorts & Entertainment Ltd. was founded in 2004 and is headquartered in Hong Kong. The company operates casino resorts in Macau, the Philippines, and Cyprus. MLCO's resorts offer a variety of gaming options, as well as restaurants, bars, and other amenities. The company also has a significant online gaming business.
Fundamental Analysis
MLCO's financial performance has been impacted by the COVID-19 pandemic. In 2020, the company's revenue declined by 64% and its net loss widened to $1.3 billion. However, the company has shown signs of recovery in 2021. In the first half of the year, MLCO's revenue increased by 22% and its net loss narrowed to $266 million.
MLCO's financial position is sound. The company has a strong balance sheet with $2.6 billion in cash and equivalents and no long-term debt. MLCO also has a track record of generating strong cash flow from operations.
Technical Analysis
MLCO's stock price has been volatile in recent months. The stock price has been trading in a range between $4.78 and $10.10 over the past year. The stock price is currently trading at $5.64, which is below its 50-day and 200-day moving averages.
The technical indicators are mixed. The relative strength index (RSI) is below 50, which indicates that the stock is oversold. However, the moving average convergence divergence (MACD) is above zero, which indicates that the stock is in a bullish trend.
Short Term Outlook
MLCO's stock price is likely to remain volatile in the short term. The stock price is likely to be impacted by the company's financial performance, as well as the overall market conditions.
Long Term Outlook
Analysts are generally positive on MLCO's long-term prospects. The company is well-positioned to benefit from the recovery in the gaming industry. MLCO's resorts are located in key gaming markets, and the company has a strong track record of generating strong cash flow.
Analyst Recommendations
The consensus analyst rating for MLCO is "buy." The average analyst price target is $9.33.
