Wynn Resorts Cut At JPMorgan On Valuation
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.
“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.
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Latest Ratings for WYNN
|Mar 2017||Aegis Capital||Upgrades||Neutral||Buy|
|Dec 2016||Aegis Capital||Initiates Coverage On||Neutral|
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