27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Following the year-to-date rally in Wynn Resorts, Limited (NASDAQ: WYNN) shares, JPMorgan’s Joseph Greff downgraded the rating on the company from Overweight to Neutral, while reducing the price target from $101 to $94. The analyst commented that the shares now offer “an even risk-reward.”
Year-to-date, Wynn Resorts’ shares have gained 37 percent versus a 9 percent decline in its U.S.-listed Macau peers and a 5 percent gain in the S&P 500. The company’s shares have been driven by investor enthusiasm over Wynn Palace’s opening and growth prospects, analyst Joseph Greff noted.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Lower Macau Operating Estimates
The Macau property-level EBITDA estimate for 2Q16 has been reduced from $182 million to $164 million on lower mass volumes. Greff pointed out that Wynn Macau likely outperformed the Macau market, although there is limited market-wide data indicating this. He added, however, that the consensus estimates for Wynn Palace’s 2017 EBITDA, at $469 million, looks aggressive.
Longer Term
“WYNN possesses an attractive growth trajectory with a path to almost $9+ in 2020 EPS, a 24 percent CAGR, and $2.1 billion in property level EBITDA, a 13 percent CAGR. We still see a path for WYNN to grow EBITDA, EPS and free cash flow per share attractively over the next five years, and because of this, longer-term investors may opt to stand pat,” the analyst wrote.
Did you like this article? Could it have been improved? Please email feedback@benzinga.com to let us know!
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.