CLSA Was Impressed By Wynn's Palace Opening, But Positives Are Priced In

CLSA’s Jon Oh mentioned that the Palace opening by Wynn Resorts, Limited WYNN was impressive, “with the property’s high quality design and management’s impeccable execution of the opening, confirming our conviction that Palace will be a success.”

Oh maintains an Underperform rating on the company, however, with a price target of $97.

Wynn’s Palace

With the opening over, the analyst believes the “real task at hand” for management will be to ensure “minimal bleed” at Peninsula.

“The look and feel of Palace is consistent with the Wynn signature and in many ways reminds us of a new and improved version of Peninsula,” Oh stated, while mentioning that Wynn Resorts had played it safe in terms of the non-gaming offerings, since it had brought together elements of F&B and retail that are familiar to the clientele.

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Peninsula

“The wow factor of Palace, coupled with high stylistic overlap with Peninsula, leaves us concerned that the former’s success will be partially subsidized at the latter’s expense,” Oh explained.

However, the analyst pointed out that there were no trends at present that could help estimate Peninsula’s earnings power, especially following table shifts. At the same time, Oh also noted that there was an definite difference in the table footprint.

Full ratings data available on Benzinga Pro.