Melco Crown gets overweight rating from Barclays

    After a raft of downward ratings of Macau casino operators recently, Melco Crown Entertainment was given a thumbs up from Barclays, which initiated coverage on the stock with an overweight rating. The firm gave a $51.43 price target, representing an upside of some 67 percent from current market prices.
    Other houses are less positive, with analysts at Telsey Advisory Group cutting their price target on Melco on Monday to $42 from $47, while ISI Group downgraded the company to a hold.
    Analysts have been revisiting their ratings of Macau casino stocks and their market forecasts for the gambling hub following disappointing May gross gambling revenue growth and a sharp slowdown in VIP traffic. In the short-term, the World Cup is expected to weigh on revenue in Macau, while the larger macro-economic picture in China is likely to continue to pressure the VIP sector, which makes up about 65 percent to 70 percent of the market.