Market Overview

Wynn Resorts Cut At JPMorgan On Valuation

Share:
Wynn Resorts Cut At JPMorgan On Valuation
Related WYNN
Fast Money Traders Share What To Buy On A Pullback
Bank Of America, Valeant, Wynn Resorts: Fast Money Picks For March 22
The Vetr community has upgraded $WYNN to 3.5-Stars. (Vetr)

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.

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.

Related Link: Las Vegas Sands Price Target Cut At JPMorgan

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!

Latest Ratings for WYNN

DateFirmActionFromTo
Mar 2017Aegis CapitalUpgradesNeutralBuy
Jan 2017NomuraUpgradesReduceNeutral
Dec 2016Aegis CapitalInitiates Coverage OnNeutral

View More Analyst Ratings for WYNN
View the Latest Analyst Ratings

Posted-In: Joseph Greff JPMorganAnalyst Color Downgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (WYNN)

View Comments and Join the Discussion!