Melco International downgraded to Underweight from Neutral at JPMorgan

JPMorgan downgraded Melco International to Underweight from Neutral with a price target of HK$4.50, down from HK$5.50. “Divergence” is how the analyst characterizes Macau’s setup, both for stocks and operations. The firm continues to seek alpha by focusing on bottom-up opportunities given a lack of sector catalysts. It thinks Melco and Galaxy can be used as funding sources over the next two to three months, given consensus estimate risks.