JPMorgan downgrades Melco Resorts on risk to estimates

JPMorgan downgraded Melco Resorts (MLCO) to Neutral from Overweight with a price target of $7.70, down from $11. The firm is adopting a more selective near-term approach for the Macau gaming stocks. For Melco, the firm sees downside risk to consensus estimates with with no dividend support. Until the company’s margins “show real traction, the stock is in ‘show-me’ territory,” the analyst tells investors in a research note.