UPDATE: Macquarie Upgrades Melco Crown Entertainment on Updated Market Growth Expectations

In a report published Friday, Macquarie Capital analyst Gary Pinge upgraded the rating on Melco Crown Entertainment Ltd. (NASDAQ: MPEL) from Neutral to Outperform, and raised the price target from $26.00 to $41.50.

In the report, Macquarie Capital noted, “As explained in our report ‘Continuing to pay out…(for now)', we have changed the assumptions in our Macau Growth Model and hence upgraded our FY13 and FY14 market growth expectations from 13% and 8% to 18% and 11%, respectively. We have also strengthened our valuation framework for MPEL (including DCFs out to 2022). Our fundamental valuation (which incorporates a concession renewal fee) is at US$41.60/sh. Target price raised from US$26 to US$41.50/sh; upgrade to Outperform.”

Melco Crown Entertainment Ltd. closed on Thursday at $32.66.