UPDATE: CLSA Upgrades Melco Resorts & Entertainment Limited (MLCO) to Outperform

(updated to add analyst name, analyst comment, market color)

CLSA analyst Jonathan Galligan upgraded Melco Resorts & Entertainment Limited (NASDAQ: MLCO) from Underperform to Outperform.

Analyst comments: "Melco reported a 25% YoY increase in its 4Q18 adjusted Ebitda solid performance and an improvement in luck drove its results. City of Dreams (CoD) was particularly strong as Morpehus gained traction and mass hold rates accelerated. Moreover, the company was optimistic momentum would continue."

As a reminder, MLCO reported fourth quarter 2018 earnings report today before the market opened. highlights of the earnings release:

• Net revenue for the fourth quarter of 2018 was US$1,396.5 million, representing an increase of approximately 5% from US$1,332.6 million for the comparable period in 2017.

• Operating income for the fourth quarter of 2018 was US$204.0 million, compared with operating income of US$129.0 million in the fourth quarter of 2017, representing an increase of 58%.

• Adjusted property EBITDA was US$425.2 million for the fourth quarter of 2018, as compared to Adjusted property EBITDA of US$339.8 million in the fourth quarter of 2017, representing an increase of 25%. The increase in Adjusted property EBITDA was mainly attributable to better performance in the group-wide rolling chip and mass market table games segments.

For an analyst ratings summary and ratings history on Melco Resorts & Entertainment Limited click here. For more ratings news on Melco Resorts & Entertainment Limited click here.

Shares of Melco Resorts & Entertainment Limited closed at $21.74 yesterday. Shares of MLCO trade up +5.98%, while SPY trades up +0.17%.

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