|Reuters reports that financial analysts predict that casino profits will maintain at current reasonably good levels despite the US recession and serve to offset a decline in profits in the hotel industry overall. |
The investment firm UBS Warburg has cut its stock price targets for 9 of the 10 hotel companies it follows. “Hotels were behind target in October, typically one of the best business travel months,” said Keith Mills, UBS Warburg analyst. Casino profit margins were also down but are expected to improve.
For example, “Harrah's Entertainment Inc.(HET) may see a small upside thanks to Atlantic City and Las Vegas, and MGM Mirage (MGG) may show strength in Las Vegas where it has managed room rates well,” said Fulcrum Global Partners analyst Joe Greff.