Slot machine parlor closures “inconsequential” to Melco Crown stock rating

    The Macau government’s plans to close down all standalone slot parlours over time will have a negative impact on Melco Crown’s Mocha clubs, but will only be a small negative for the group overall, according to Sterne Agee. 

    The firm said the closures are “inconsequential” for its buy rating on the stock. Mocha represents about 2 percent of estimated 2015 EBITDA and less than 1.5 percent of 2016 EBITDA. There is an opportunity to move some standalone parlors into hotel casinos to conform with the new rules. Sterne Agee maintains its $57 price target.