What Happened to Crown Resorts Ltd’s Share Price?
Shares in gaming and entertainment company Crown Resorts Ltd [ASX:CWN] surged today. Crown gained more than 7.5% to finish the day as one of Australia’s best-performing large-cap stocks. Today’s price action marks one of Crown’s strongest days of the past year, and follows a lacklustre 12 months for the casino operator.
Why Did This Happen to CWN Shares?
Some strong data out of Asian gaming centre Macau boosted Crown shares today. Bank of America Corp [NYSE:BAC] reports that gross gaming revenue rose 6% for the week ending January 25. Goldman Sachs Group Inc [NYSE:GS] has also upgraded the stock to a ‘conviction buy’, with a price target of $17.50.
The Chinese authorities had put the Macau casino operators under some pressure recently by launching a crackdown on corruption. This data shows that revenue is still flowing and growing. What’s more, central banks around the world are looking more and more like keeping monetary policy easier for longer. That boosts sentiment towards discretionary leisure stocks like Crown Resorts.
What Now For Crown Resorts Ltd?
Crown Resorts has a great pipeline of projects in development, which should enhance the company’s prospects over the next few years. With sentiment on this stock bouncing off a multi-year low, now could prove an opportune time to take a closer look at Crown.
There’s plenty of scope for this ritzy stock to bring investors handsome profits — but as with all large-cap stocks, you should temper your expectations regarding potential rewards.
If you’d like to know which Aussie stocks could offer you the potential to bring you huge triple-digit percentage profits over the next few years, go here to find out more.
Cheers, Tim Dohrmann
Small-Cap Analyst, Australian Small-Cap Investigator