Texas Capital Downgrades Melco Resorts Stock on Macau Concerns

Texas Capital Securities has downgraded Melco Resorts & Entertainment from Buy to Hold, reducing its price target from $8 to $5.50 as uncertainty over Macau’s gaming market clouds the casino operator’s earnings outlook. The assessment, issued by analyst David Bain on Friday and cited by Investing.com, reflects a widening gap between his third- and fourth-quarter 2026 earnings before interest, taxes, depreciation and amortization (EBITDA) forecasts and broader market expectations. The firm also cited limited visibility over Macau gross gaming revenue (GGR), continued promotional spending by casino operators and economic pressures in mainland China.