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Wells Fargo analysts cited major macro improvements across Wynn Resorts’ (NASDAQ:WYNN) key business areas, as they upgraded the company to ‘Overweight’ from ‘Equal Weight’, raised their price target to $101 from $74, and named the stock to Wells Fargo’s “Tactical Ideas list.”
In their latest update on the renowned casino and hotel operator, the analysts listed the following as “key drivers of upgrade”:
1. “WYNN has a viable path to recapturing most/all of its 2019 VIP EBITDA”, noting this opportunity “is not reflected in the stock.”
2. “WYNN is highly levered to Macau’s GGR recovery, now more palpable post China’s policy pivot, and representing the best growth opportunity in Gaming.”
3. “WYNN’s smaller scale and premium mass offering should allow for a speedy recovery.”
They said “company-specific catalysts”, coupled with “undemanding valuation at 10x 2024E EV/EBITDA, a discount to its historical avg. 11x and 12-14x during periods of accelerating GGR growth” are expected to “drive stock outperformance during the quarter.”
Shares of WYNN are gaining 2.5% on the first trading day of 2023, having stayed largely flat during 2022.
