Citigroup Reiterates Sell Rating on Wynn Resorts (WYNN)
Citigroup is out with a research report this morning, where it reiterates its Sell rating on Wynn Resorts (NASDAQ: WYNN); it has a $73.30 price target on the stock, up from $69.90.
The Citi analysts cited their channel checks in Macau, which show that gross gaming revenue rose 40% year over year to MOP15.8 billion during August. Although the month was -3% from July, August was still the third largest month on record.
They also noted that Wynn’s market share declined in August to 14% and remains below its first half level despite the Encore opening in April. Reflecting record revenues from Macau in Jul/Aug, the analysts have increased their WYNN earnings by 18-21% and have increased the target price to US$73.30 from US$69.90.
The reasons behind the sell rating were a negligible convention presence in Las Vegas and that fact that in Macau, the Wynn subsidiary is yet to secure a new property in Cotai to supplant Encore’s underperformance.
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