WYNMF - Wynn Resorts is tipped by JPMorgan for second-half rally

2023-07-11 07:17:54 ET

JPMorgan raised estimates on Wynn Resorts Limited ( NASDAQ: WYNN ) as it took a positive view of the casino operator's prospects for the second half of the year.

Analyst Joseph Greff and his team raised the Wynn Macau ( OTCPK:WYNMF ) property-level EBITDA estimates based on recent GGR tracking. The firm kept the Las Vegas projections unchanged, but noted that there is probably more upside than downside risk given that market’s quarter-to-date GGR/room RevPAR trends. JPMorgan also lifted estimates for Wynn's ( WYNN ) Encore Boston Harbor property.

Greff said the firm continues to believe that Wynn Resorts ( WYNN ) is an attractive mid-cap play in the ongoing Macau recovery, which is being discounted at current valuation levels.

"At current levels, WYNN trades at what we view as a reasonable and undemanding 2024E EV/EBITDAR multiple of 10.6x, one that reflects macro uncertainty. The lack of positive share price momentum since 1Q23 earnings season is, in our view, a buying opportunity for investors willing to ignore the noise and focus on the Macau GGR recovery."

JPMorgan kept an Overweight rating on Wynn Resorts ( WYNN ) and set a year-end 2023 price target of $142, which implies ~35% upside potential from current levels. The average analyst price target on WYNN is $127.97.

Shares of Wynn Resorts fell 0.95% in premarket trading to $105.00. The casino stock still trades above the 200-day moving averages after a gain of more than 6% over the last two weeks.

More on Wynn Resorts:

• Wynn Resorts: Too Much Of A Gamble For Me
• Growth metrics on Wynn Resorts
• Valuation metrics on Wynn Resorts
• Recent option trades on Wynn Resorts
• Seeking Alpha's Quant Rating for Wynn Resorts

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