UPDATE: Brean Capital Initiates Coverage On Wynn Resorts Despite Near-Term Challenges

In a report published Thursday, Brean Capital analyst Bryan Maher initiated coverage on

with a Buy rating and $174.00 price target. In the report, Brean Capital noted, "Wynn Resorts primarily targets high-end clientele at its integrated casino resorts in Las Vegas and in Macau (SAR of China), via its 72.3% ownership position in Wynn Macau. Unfortunately, due to China Premier Xi Jinping's anti-corruption crackdown over the past year, Macau VIP play has come under significant pressure, negatively impacting Wynn Macau results, particularly in 2H14. The company is in the process of building a new US$4.1B casino resort, Wynn Palace, on Cotai in Macau, which is expected to open in 1H16. In 2014, the company was awarded the sole license to develop and operate a casino resort in Eastern Massachusetts (Boston), where it is getting ready to construct a $1.7B resort in a heavily populated market in which it will have a near-monopoly position. We believe Wynn Resorts shares have been oversold on Macau concerns and should be bought at current levels." Wynn Resorts closed on Wednesday at $122.92.