- Wells Fargo Analyst Daniel Politzer maintained an overweight rating Wynn Resorts, Limited WYNN, Price target increased to $134 from $128.
- Politzer is considering Wynn Resorts a top pick with a “clear path to upward estimate revisions.”
- Macau is recovering with the company retaining its stake with opportunities to return to FY19 EBITDA levels.
- The company’s Macau operations are valued at $58/share, while its US operations imply an equity value of $75/share.
- However, increased competition in Macau, particularly from newly opened integrated resorts such as Grand Lisboa Palace or London Macao, could hurt Wynn Resorts.
- The analyst is also concerned about a slowdown in US consumer spending, which could adversely affect the company’s Las Vegas and Boston operations.
- Price promotion: WYNN shares traded 4.25% higher to $110.57 on the last check Thursday.
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