Date: March 19, 2026
Category: Market Analysis & Finance
Summary:
Investment bank Morgan Stanley has issued a cautious outlook on Macau’s gaming sector, downgrading its industry rating from “Attractive” to “In-Line with Expectations.” The firm projects a modest 6% year-on-year growth in Macau’s gross gaming revenue (GGR) for 2026, with EBITDA growth expected to slow to just 2%. This forecast is below market expectations and signals a potential weakening trend. The downgrade is attributed to several structural factors, including a persistently weak mass market, rising promotional costs, and continued pressure from non-gaming expenditures. Morgan Stanley anticipates that growth will decelerate starting in May, with the second and third quarters potentially recording negative EBITDA growth. Despite the sector-wide downgrade, the firm maintains a preference for specific stocks, reiterating an “Overweight” rating on Melco Resorts & Entertainment and highlighting Sands China as a top pick .
