Morgan Stanley analyst Praveen Choudhary downgraded MGM China (MCHVF) to Equal Weight from Overweight with a price target of HK$16.50, down from HK$19. The firm cut its 2026 and 2027 EBITDA estimates by 7% each to incorporate higher royalty payments to parent MGM Resorts (MGM), noting that the royalty payments are roughly 15% of its corporate EBITDA, or double what they had been in 2023-25. The firm remains constructive on Macau, driven by double-digit GGR growth, adding that it prefers Galaxy and Sands China over MGM and Wynn.
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