Sterne Agee ups estimates for Melco Crown, reiterates Buy

    Sterne Agee said it’s raising its Q1 adjusted Ebitda forecast for Melco Crown to $350.7 million from $329.9 million previously. For the full year, it sees adjusted Ebitda of $1.44 billion from $1.4 billion. The firm reiterates its Buy rating on the stock. Projected Ebitda growth rates for 2015 and 2016 of 27 percent and 43 percent respectively, are the highest among U.S. listed peers, yet its projected enterprise value to Ebitda ratio, after adjusting for project ownership of 11.1x and 7.9x, is the lowest of its peers, Sterne Agee said. MPEL also has the most catalysts over the next 15 months, with the only significant casino opening in 2014 in Asia and the next full new casino in Macau toward the middle of next year.