Sterne Agee raises Melco Crown PT, sees no reason for discount

    Sterne Agee has raised its price target on Melco Crown after the company’s fourth-quarter earnings beat estimates and it announced a regular and special dividend. The firm says it sees no reason as to why the company is currently trading at a discount to its peers. The rating was reiterated at “Buy” and the price target upped to $57 from $54. All of Melco Crown’s projects are on time and on budget, with the company’s City of Dreams Manila scheduled to be the only Asian casino opening this year. “We don’t believe Melco’s discount to peers should exist,” Sterne Agee said in a note. The company trades on at 13.1 x enterprise value to EBITDA, compared with 15.5 at Las Vegas Sands and 18.3 at Wynn Resorts.