Deutsche Bank Cuts Price Targets On Wynn Resorts, Las Vegas Sands

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Deutsche Bank cut its price targets Thursday on Wynn Resorts, Limited WYNN and Las Vegas Sands Corp. LVS due to Macau exposure.

Analyst Carlo Santarelli maintained a Buy rating on Wynn Resorts, but lowered the price target from $225 to $180.

Santarelli had a positive view on Wynn due to a "1) a meaningful share taking Cotai project, 2) a near-term market share traction catalyst post construction disruptions, the righting of smoking issues, and hold normalization at Wynn Macau, and 3) healthy and growing LV Strip assets.”

Given 20+ percent “upside to our fair value, and the longer term Cotai story, we are sticking with our Buy rating here while acknowledging the difficulty inherent in the current trajectory in Macau.”

Wynn Resorts recently traded at $148.12, up 1.83 percent.

Santarelli maintained a Hold rating on Las Vegas Sands while cutting the price target from $65 to $53.

“Among the companies we cover with Macau exposure, we continue to see LVS as the most challenged over the near to medium term given: 1) top line market ambiguity coupled with a highly likely share loss story upon new competitive openings on Cotai, 2) difficult Macau VIP hold comparisons in 2015, 3) a more aggressive competitor appetite for the previously neglected grind mass customer LVS has done so well with, and 4) what we expect will be margin pressure from operating cost escalation and mass gaming margin pressure,” according to the analyst note.

Las Vegas Sands recently traded at $56.16, up 1.89 percent.

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Posted In: Analyst ColorPrice TargetAnalyst RatingsCarlo SantarelliDeutsche Bank
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