Wynn Resorts Received its Third Buy in a Row

By George MacDonald

After Morgan Stanley and Citigroup assigned a Buy rating to Wynn Resorts in the last month, the company received another Buy, this time from Craig-Hallum. Analyst Bryan Maher initiated coverage with a Buy rating on Wynn Resorts (NASDAQ: WYNN) yesterday and set a price target of $174. The company’s shares opened today at $125.01, close to its 52-week low of $121.53.

Maher wrote, “We are initiating on Wynn Resorts with a Buy rating and a target price of $174. Wynn Resorts primarily targets high-end clientele at its integrated casino resorts in Las Vegas and in Macau (SAR of China), via its 72.3% ownership position in Wynn Macau. Unfortunately, due to China Premier Xi Jinping’s anti-corruption crackdown over the past year, Macau VIP play has come under significant pressure, negatively impacting Wynn Macau results, particularly in 2H14. The company is in the process of building a new US$4.1B casino resort, Wynn Palace, on Cotai in Macau, which is expected to open in 1H16. In 2014, the company was awarded the sole license to develop and operate a casino resort in Eastern Massachusetts (Boston), where it is getting ready to construct a $1.7B resort in a heavily populated market in which it will have a near- monopoly position. We believe Wynn Resorts shares have been oversold on Macau concerns and should be bought at current levels”

Currently, the analyst consensus on Wynn Resorts is Hold and the average price target is $165.70, representing a 32.5% upside. In a report issued on March 5, Citigroup also maintained a Buy rating on the stock with a $195 price target.

Wynn Resorts` market cap is currently $12.65B and has a P/E ratio of 17.4. The company has a book value ratio of %.

According to TipRanks.com, Maher is ranked #1562 out of 3535 analysts.

Wynn Resorts Ltd is a developer, owner and operator of destination casino resorts. It owns and operates two destination casino resorts namely Wynn Las Vegas and Encore at Wynn Macau.