MLCO stock touches 52-week low at $4.78 amid market challenges

Published 04/04/2025, 19:44
MLCO stock touches 52-week low at $4.78 amid market challenges

Melco Crown Entertainment (NASDAQ:MLCO) stock has reached a 52-week low, dipping to $4.78, as the company faces a tough market environment. According to InvestingPro analysis, the stock appears slightly undervalued at current levels, despite showing strong revenue growth of 22.86% in the last twelve months. This latest price point reflects a significant downturn from the previous year, with the stock experiencing a 1-year change of -32.16%. Investors are closely monitoring the situation, as the company navigates through the challenges that have led to this decline, including industry-specific headwinds and broader economic factors that have affected the overall market sentiment towards the gaming and hospitality sector. Notably, InvestingPro data reveals that management has been actively buying back shares, and analysts maintain a positive outlook with price targets ranging from $5.50 to $10.00. Get access to 8 more exclusive InvestingPro Tips and a comprehensive Pro Research Report for deeper insights into MLCO’s potential.

In other recent news, Melco Resorts & Entertainment Ltd reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) loss of $0.05, which missed analyst expectations of a $0.0047 loss. Despite this, the company exceeded revenue forecasts, achieving $1.19 billion against the anticipated $1.18 billion. In a strategic move, Melco is exploring alternatives for its City of Dreams Manila property to adopt an asset-light strategy, a decision that Citi analysts believe could accelerate the company’s debt reduction. However, Citi maintained a Neutral rating on the stock while increasing its price target to $6.25. Morgan Stanley (NYSE:MS) also upgraded Melco’s stock rating from Equalweight to Overweight, citing increased market share in mass gaming revenue and projecting continued growth into 2025. They adjusted the price target to $6.70, down from $7.50. Melco’s management reported a strong performance during the Chinese New Year period, with significant increases in property visitation and gross gaming revenue. The company plans to reduce operating expenses in the first half of 2025, which could enhance its financial performance.

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