Deutsche Bank Maintains Buy on Wynn Resorts after SEC Letter
Deutsche Bank has published a research report on Wynn Resorts (NASDAQ: WYNN) after the company announced this morning its receipt of an SEC letter requesting information on the $135M donation made to University of Macau.
In the report, Deutsche Bank writes, "Recall, in May 2011 Wynn Macau made a $135 million donation to the University of Macau Development Foundation, an event which has been highlighted recently in Mr. Okada's filings and was reported on multiple times by various news agencies and in WYNN S.E.C. documents when it was originally made. Accordingly, we believe the root cause of the investigation stems largely from recent claims made by Mr. Okada, who, WYNN noted, was the lone dissenter in the Board vote regarding the donation. Mr. Okada is said to have been unhappy with the duration of the donation. From here, the investigation can go in one of two directions. The S.E.C. can declare no findings and cease their search or it could move from informal to formal, in which case the S.E.C. would likely subpoena documents."
Deutsche Bank maintains its Buy rating and $148 price target on Wynn Resorts, which is currently trading down $2.34 from Friday's $113.20 closing price.
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