The 2014 All-America Research Team: Gaming & Lodging, No. 2: Shaun Kelley

< The 2014 All-America Research TeamShaun KelleyBank of America Merrill LynchFirst-place appearances: 0

Total appearances: 6

Team debut: 2009For a third year running, Shaun Kelley of Bank of America Merrill Lynch earns second-place honors on this roster. “Shaun’s deep-dive analyses separate him from his peers,” attests one backer. Of the 30 U.S. gaming and lodging shares under his coverage, Hilton Worldwide Holdings is a favorite. Kelley has been positive on the shares since launching coverage on the McLean, Virginia–based hospitality heavyweight in January with a buy rating, thanks to the hotelier’s market dominance and valuable real estate. In mid-September, Hilton’s stock was trading at $24.13, having gained 8.4 percent while the sector declined 1 percent. The analyst believes a price of $26 is justified. Also in January he upgraded MGM Resorts International from neutral to buy, at $25.36, largely on expectations of a boost from its new properties in Macau. Despite disappointing gaming revenues in the gambling mecca, he expects the casino operator to perform well in Las Vegas, its home town. MGM’s shares had slipped to $23.21 by the middle of September, but Kelley maintains a $33.50 target price on them. “Shaun is straightforward, sensible and articulate, which are rare qualities on Wall Street these days,” observes another portfolio manager.

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