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Argus Upgrades Wynn Resorts To Buy, Praises The Wynn Palace In Macau

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Argus Upgrades Wynn Resorts To Buy, Praises The Wynn Palace In Macau

"Despite stiff competition, results at the Wynn Palace in Macau, which opened in August 2016, have shown consistent improvement, with occupancy and room rates both rising in the fourth quarter,” Argus’ John Staszak said in a note.

The analyst upgraded the rating on Wynn Resorts, Limited (NASDAQ: WYNN) from Hold to Buy, with a price target of $135.

Revenue Growth

Staszak mentioned that the gross gaming revenue (GGR) in Macau has increased over the past eight months, reversing the previous decline.

On April 1, the Macau Gaming and Inspection and Coordination Bureau reported 18.1 percent growth in GGR during March to $2.6 billion, well ahead of the consensus expectations of a 15 percent increase.

See Also: Wynn Resorts Reaches Highest Level Since April 2015 After Positive Macau Data

Recovery to Continue

“We expect this recovery to continue over the remainder of 2017, helped by new cruises to Macau for VIP customers and marketing efforts targeted at other visitors,” the analyst stated.

Staszak also expects Wynn Resorts to benefit from robust tourist demand, along with a tight convention schedule in Las Vegas.

“We expect these positive trends in both Macau and Las Vegas to result in accelerated earnings growth for Wynn over the next two years,” the analyst said.

Given the faster that anticipated improvement in the VIP market in Macau, the EPS estimate for 2017 has been raised from $4.20 to $4.30, while the EPS estimate for 2018 has also been raised from $4.80 to $5.00.

Latest Ratings for WYNN

DateFirmActionFromTo
May 2020UBSMaintainsNeutral
May 2020Credit SuisseAssumesNeutral
May 2020CFRAUpgradesStrong SellHold

View More Analyst Ratings for WYNN
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