Las Vegas Sands and Wynn Resorts could suffer from worsening trade relations between China and the United States, according to an analysis by Morgan Stanley of U.S. companies most dependent on Chinese business.
Wynn Resorts generates 69 percent of its revenue from China, the greatest exposure among U.S. companies larger than $3 billion, according to a new report penned by Michael Wilson, an equity strategist for the investment bank.
LVS ranks third, with 65 percent revenue exposure.
The U.S.-China trade dispute escalated earlier this month with the Trump administration announcing tariffs on $34 billion worth of Chinese goods that will take effect July 6. Beijing quickly responded with its own list of U.S. goods worth about the same amount that will also be subject to tariffs on July 6.
By industry, semiconductor and semiconductor equipment companies have the highest revenue exposure to China at 52 percent, the report said, with chipmaker Qualcomm ranking second behind Wynn at 65 percent.
Other companies on Morgan Stanley’s list with 30 percent or more revenue exposure include logistics company Expeditors International of Washington and automotive seating manufacturer Adient.
Energy and technology hardware and equipment have 14 percent revenue exposure.
