Sterne Agee Reiterates Buy Rating On Wynn Resorts (WYNN)
In a research report released by Sterne Agee today, the firm's analysts reiterated their Buy rating on Wynn Resorts (NASDAQ: WYNN). Yesterday after the closing bell the casino and resort company reported EPS of $0.52 compared to Wall Street estimates of $0.42. Revenues were in line with estimates at $1 billion. On a year over year basis, revenues were up 42.8%.
According to the Sterne Agee analysts on the conference call, "Management spoke to an increase in forward group bookings and some bright spots for the ability to yield rates. However, after an initial more positive commentary on Las Vegas than expected, management reigned in investors with subsequent strong comments regarding struggles and uncertainty in the marketplace."
Sterne Agee views "Encore Macau (WYNN's new Chinese Development), which opened in April 2010, as the right property, at the right time, in the right market," which could drive upside in WYNN. Las Vegas, however, remains a difficult market in their view. The analysts also wrote about WYNN's $2 billion planned project in Cotai. They said, "We believe a 20% ROI or $400 million in EBITDA based on a $2 billion project may prove conservative. Additional details going forward could act as a catalyst for shares."
The firm has a BUY rating and a $115 price target on the stock. During today's trading session, WYNN has lost 1.43% to $86.57.
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