PENN Entertainment (PENN), Churchill Downs (CHDN), and other regional gaming companies are expected to surpass market expectations in Q2, while Macau-based operators are likely to deliver mixed results, BofA Securities said Monday in a report.

For regional companies, BofA projects same-store gross gaming revenue growth of 3% from a year earlier in April and May, with June flat.

For online gaming companies, while the World Cup supported trends in June, BofA flagged concerns about wagering-volume growth in Q3 and Q4 as prediction-market activity continues to accelerate.

For Macau operators, BofA expects Las Vegas Sands (LVS) to miss estimates and MGM Resorts International (MGM) to beat expectations.

Las Vegas Strip gaming operators are expected to deliver results in line with consensus expectations, the report said.

BofA lifted its price objective to $22 from $18 on PENN stock and to $70 from $60 on Red Rock Resorts (RRR), and cut its objective to $60 from $70 on Las Vegas Sands.

Price: 21.41, Change: +0.84, Percent Change: +4.08