Melco Resorts & Entertainment Ltd. （MLCO.US）2Q24 results inline： Margin slips on higher costs after stepping upreinvestment； EBITDA to trend more inline with GGR ahead； Buy

Investment Rating - The report maintains a "Buy" rating for Melco Resorts & Entertainment Ltd. (MLCO) with a 12-month price target of $9.70, indicating an upside potential of 87.6% from the current price of$ 5.17 [2][3]. Core Insights - The report highlights that MLCO's market share in Macau is expected to improve due to reinvestment in product and service quality, despite facing higher costs [4][6]. - The company has experienced a decline in non-gaming revenue but managed to grow its gaming revenue by 6% quarter-over-quarter, reflecting successful property upgrades and new initiatives [4][5]. - Management is cautiously optimistic about the business outlook, noting improved GGR momentum in late July and August, with daily GGR reaching $653 million in the first two weeks of August [6][7]. - The report revises FY24E-26E EBITDA estimates down by 6% to 5% due to lower margins and GGR trends, but expects EBITDA to reflect market share momentum moving forward [8]. Financial Summary - MLCO's total revenue is projected to grow from$ 3,775.2 million in 2023 to $5,140.4 million by 2026, with EBITDA increasing from$ 961.7 million to $1,346.1 million over the same period [3]. - The company reported a net debt of$ 6.0 billion with a net leverage ratio of 5.3x, indicating stable financial health despite refinancing activities [5][6]. - The report notes that MLCO's GGR market share improved by 0.7 percentage points quarter-over-quarter to 15%, with specific properties showing varied performance [5][7].