Barclays Cuts Wynn Resorts To Equal-Weight

In a report published Friday, Barclays analysts downgraded their rating on

from Overweight to Equal-Weight. The price target was lowered from $160 to $105. The analysts believe the stock has 4 percent downside from its current levels. Wynn Resorts has large exposure to the shrinking VIP market in Macau. While the company's new casino is scheduled for launch in March 2016 in Cotai, the analysts expect the opening to be held up due to delays, similar to that witnessed by other new builds in this market. On the other hand, the analysts also believe that in Las Vegas, "Wynn's exposure to the high-end Baccarat gamer could cause that property to underperform in the near term." The analysts expressed their concern regarding the persistent headwinds in the Macau market, which are not showing any signs of abating in the near future. However, the analysts also believe that the declines are likely to become less steep by the end of the year, which could prove favorable for investors. The 2015 and 2016 estimates for Wynn Resorts have been revised downward, since the analysts believe that "near-term market performance will continue to surprise to the downside driving company specific results below consensus expectations."