The Macao Special Administrative Region's casino stocks are poised to continue their recent outperformance as special events and luxury hotel offerings help drive a recovery in gross gaming revenue, sell-side analysts say.

A Bloomberg Intelligence gauge of Macao gaming shares has risen 59 percent from a low in April, compared with a 31 percent gain in the Hang Seng Composite Index. That has come as monthly gaming revenue for the gambling hub beat analyst expectations for each of the past three months.

Concerts by Cantopop icon Jacky Cheung Hok-yau and Korean rapper G-Dragon helped draw visitors. Eased travel policy and railway improvements are among factors seen keeping the uptrend going.

ALSO READ: Macao gaming revenue soars past estimate on concert fervor

“We expect the supportive visa regime, enhanced travel infrastructure and the expansion of nongaming offerings to drive robust gaming revenue growth in 2025,” Morningstar Inc analyst Jennifer Song said in a presentation last month. “Shares are appealing now given the sector’s favorable long-term outlook.”

US-listed shares of Melco Resorts & Entertainment Ltd is leading gains, up 95 percent from its spring trough, followed by a 72 percent rise in Hong Kong-listed MGM China Holdings Ltd.

Yet sector valuations remain low, which Song sees supporting further upside for Macao casinos. The Bloomberg Intelligence index is trading at 8.8 times enterprise value to estimated forward earnings before interest, taxes, depreciation and amortization, below its five-year average of about 14 times.

The casino gauge jumped more than 4 percent Monday to its highest level since Oct 7. Quarterly results and monthly revenue figures will provide further clues for investors going forward.

READ MORE: Macao gaming revenue rises 14.9% in Nov, exceeds estimate

“July is expected to be another above-trend month,” Jefferies Financial Group Inc analyst Anne Ling wrote in a note earlier this month. “The update from our sources and checks appears to substantiate the strong momentum in the stocks, which could continue.”