Physical layer multicasting with opportunistic user selection (OUS) is examined for multicell multi-antenna wireless systems. By adopting a two-layer encoding scheme, a rate-adaptive channel code is applied in each fading block to enable successful decoding by a chosen subset of users (which varies over different blocks) and an application layer erasure code is employed across multiple blocks to ensure that every user is able to recover the message after decoding successfully in a sufficient number of blocks. The transmit signal and code-rate in each block determine opportunistically the subset of users that are able to successfully decode and can be chosen to maximize the long-term multicast efficiency. The employment of OUS not only helps avoid rate-limitations caused by the user with the worst channel, but also helps coordinate interference among different cells and multicast groups. In this work, efficient algorithms are proposed for the design of the transmit covariance matrices, the physical layer code-rates, and the target user subsets in each block. In the single group scenario, the system parameters are determined by maximizing the group-rate, defined as the physical layer code-rate times the fraction of users that can successfully decode in each block. In the multi-group scenario, the system parameters are determined by considering a group-rate balancing optimization problem, which is solved by a successive convex approximation (SCA) approach. To further reduce the feedback overhead, we also consider the case where only part of the users feed back their channel vectors in each block and propose a design based on the balancing of the expected group-rates. In addition to SCA, a sample average approximation technique is also introduced to handle the probabilistic terms arising in this problem. The effectiveness of the proposed schemes is demonstrated by computer simulations.