Market Overview

Wynn Is Set To Win Amid Gaming Resurgence In Macau, Goldman Sachs Says

Wynn Is Set To Win Amid Gaming Resurgence In Macau, Goldman Sachs Says

Wynn Resorts, Limited (NASDAQ: WYNN) is set to benefit from a return of the high rollers to a resurgent Macau, Goldman Sachs said Tuesday.

The Analyst

Goldman Sachs analyst Stephen Grambling upgraded Wynn Resorts from Neutral to Buy and raised the price target from $140 to $155.

Grambling continues to also have Buy ratings on other stocks in the sector: Las Vegas Sands Corp. (NYSE: LVS), Red Rock Resorts Inc. (NASDAQ: RRR), and VICI Properties Inc (NYSE: VICI), and said all will benefit from stronger revenue in casinos.

The Thesis

Several factors are combining to make Wynn Resorts more attractive, including:

  • Inflecting free cash flow as major capital projects are completed
  • New projects in Boston and Las Vegas
  • Stabilizing Gross Gaming Revenue
  • Investments in Macau that Should Bring VIP gamblers back

High Rollers Are Back

The Macau gaming scene is set for a rebound, Grambling said, with $15 billion in planned investments that should bring VIP gamblers back from other Asian destinations. Casinos will also get some regulatory help from changes in Macau. All that should make Wynn attractive as it’s at near-trough valuation.

The optimism is in stark contrast to early in the year, when analysts worried that slowing economic growth in China would hurt Macau revenue this year, a fear compounded a few months later by political turmoil and protests in nearby Hong Kong.

He also cited the recent opening of Encore Boston Harbor with results outpacing expectations, and Wynn’s re-opening of a golf course and convention center expansion in Las Vegas that could drive earnings.

The macro changes in the gambling outlook, particularly in Macau, will boost all industry players there, Grambling said.

Price Action

Wynn Resorts was up 2% to $110.41 at publication time.

Related Links:

Casino Analyst Bullish On Vegas, But Not Macau

Casinos Among The Hardest-Hit Businesses During Economic Downturns

Latest Ratings for WYNN

Jan 2020MaintainsBuy
Jan 2020MaintainsEqual-Weight
Jan 2020MaintainsEqual-Weight

View More Analyst Ratings for WYNN
View the Latest Analyst Ratings

Posted-In: Goldman Sachs Macau Gambling Revenue Resorts And Casinos Industry Stephen GramblingAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga


Related Articles (LVS + RRR)

View Comments and Join the Discussion!

Latest Ratings

TSCOPiper SandlerMaintains119.0
UNPBMO CapitalMaintains200.0
UNPArgus ResearchMaintains205.0
ISRGJP MorganMaintains665.0
EHTHRBC CapitalMaintains132.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at