Wynn Resorts is garnering attention as analysts express optimism about its future prospects, particularly in light of a recent upgrade from Jefferies. The firm’s analyst, David Katz, has elevated the stock’s rating from “hold” to “buy,” citing a robust core business and a promising development pipeline. With this change, Katz also adjusted his price target for Wynn Resorts, raising it from $105 to $118, suggesting a potential upside of 33% based on Friday’s closing price.
Positive Developments on the Horizon
The company’s shares experienced a slight uptick following this rating adjustment. A key driver behind this positive sentiment is the ongoing construction of Wynn Al Marjan Island in the United Arab Emirates. This project is poised to be the first casino in the UAE, and Katz notes that confidence surrounding it is on the rise. He highlighted that the main concern has been the timeline for the property’s opening, but with Wynn having secured a casino license and construction progressing as planned, those worries are diminishing.
Strength in the Macao Market
In addition to the UAE project, Wynn Resorts is likely to benefit from a rebound in the Macao gaming market. The company maintains a strong presence among VIP and premium customers in the region, which was instrumental in achieving a 23% increase in EBITDAR year-over-year. Katz expressed optimism about maintaining this stability, predicting a steady performance in 2025.
Market Response and Analyst Sentiment
This upgrade follows a commendable performance from Wynn Resorts, which saw its shares surge by 10.4% after reporting fourth-quarter earnings that exceeded expectations. The company achieved stronger-than-anticipated net revenues from both Macao and Las Vegas, although its stock is still down 15.5% over the past year. Notably, analyst sentiment is largely favorable; of the 19 analysts covering Wynn Resorts, 16 have issued a “buy” or “strong buy” rating, with an average price target indicating over 26% potential upside.
As Wynn Resorts positions itself for growth, investors are keeping a close watch on the developments in both Al Marjan Island and the recovering Macao market, which could play pivotal roles in the company’s trajectory moving forward.
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