In a move which is wholly appropriate yet something of a wake up call to investors it has revealed that US stock broking outfit Goldman Sachs has substantially reduced its target price on a number leading and second line casino groups.
While Goldman’s seems to appreciate that the footfall to many US based casino groups may not be largely affected by the downturn, there has been a drop in the amount of money spent by each visitor. It is this rather than any footfall change which has alerted analysts to the fact they need to revise their thoughts and their figures.
However when you see the target price for the likes of Las Vegas Sands reduced from $60 to $25 and MGM Mirage form $32 to $17 you can get a sense of the changes going on in the sector. There have also been substantial changes in the price target of groups such as Wynn resorts, Ameristar Casinos, Boyd Gaming and a number of other casinos outfits.
While this will come as no real surprise to some investors it does put down the problems of the industry in black and white, something which does not make good reading.
In a move which is wholly appropriate yet something of a wake up call to investors it has revealed that US stock broking outfit Goldman Sachs has substantially reduced its target price on a number leading and second line casino groups.