UPDATE: Cantor Fitzgerald Initiates Buy, $134 on Wynn Resorts; Quantitative and Qualitative Cases Align
Cantor Fitzgerald initiated its coverage on Wynn Resorts (NASDAQ: WYNN), according to a note published on Tuesday, with a Buy rating and a price target of $134.
Cantor Fitzgerald said, "Wynn shares are off 20% since mid April on concerns of a slowdown in Macau and a dispute with long-time shareholder Kazuo Okada. At current prices, the market is valuing Wynn's assets at less than 10x EBITDA and giving it no credit for its Cotai project. … We value WYNN using a sum-of-the-parts methodology that values Las Vegas and Macau at 9.0x and 12.0x 2013 EBITDA estimates, respectively. While the qualitative case for Wynn Resorts has been fairly consistent over the years, the quantitative valuation case is usually more difficult to make. That isn't the case now, in our view, and we find current valuation levels attractive."
Wynn Resorts closed at $100.01 on Monday.
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