Texas Capital cuts target for Melco Resorts stock to USD 5.50
Published on 10/17/2026 at 19:25 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSAnalyst target and stock valuation
- On October 16, 2026, Texas Capital lowered its target to USD 5.50 from USD 8.00.
- Melco Resorts stock lost 48.50 percent over the year through October 16, 2026.
- Melco Resorts stock stood at USD 4.15 on October 16, 2026, down 3.94 percent versus the prior close.
- Melco Resorts had a market capitalization of USD 1.6 billion and a P/E ratio of 6.93.
Texas Capital downgraded Melco Resorts & Entertainment to Hold from Buy on October 16, 2026, and cut its price target from USD 8.00 to USD 5.50. Markets Insider reported that the firm cited weaker visibility into Macau gross gaming revenue amid prolonged promotional activity. Melco Resorts stock last stood at USD 4.15 on October 16, 2026 at 4:00 p.m. ET, down 3.94 percent versus the prior close.
Revenue gives the business scale
Melco Resorts reported revenue of USD 1.25 billion for the second quarter ended June 30, 2026. The quarterly figure places the operator among the larger listed casino groups focused on Macau and other Asian resort markets, while its portfolio also includes properties in the Philippines and Cyprus.
Stock stays near its yearly floor
The stock's year range was USD 4.06 to USD 9.53 as of October 16, 2026. At USD 4.15, the price stood USD 0.09 above the yearly low and USD 5.38 below the yearly high. Casino.org reported that the stock had lost 48.50 percent over the preceding year. That comparison makes the target reduction more important than a single session move.
Valuation puts the target in context
Melco Resorts had a market capitalization of USD 1.6 billion and a trailing P/E ratio of 6.93 as of October 16, 2026. The lower target reflects a more cautious view of near-term earnings power rather than a change to the company's regional resort footprint.
Comparison with peers
Melco Resorts (Nasdaq, USD): minus 3.94 percent, P/E 6.93, market capitalization USD 1.6 billion.
MGM Resorts International (NYSE, USD): minus 2.99 percent, P/E 17.33, market capitalization USD 7.2 billion.
Wynn Resorts (Nasdaq, USD): minus 1.78 percent, P/E 18.13, market capitalization USD 7.8 billion.
Price and valuation remain central
Melco Resorts combines a lower P/E ratio with a share price only USD 0.09 above its yearly low. The next market debate therefore centers on whether Macau promotional spending eases enough to support the USD 5.50 target.
Market context: Market report Nasdaq Composite.
