On Friday, Seaport Global Securities announced an upgrade of Wynn Resorts (NASDAQ:WYNN) shares from Neutral to Buy, setting a price target of $116.00. The upgrade came after a reassessment of the company's performance in the gaming industry, particularly in the Macau and Las Vegas markets.
The firm had initially taken a neutral stance on Wynn Resorts in mid-April, expressing cautious optimism about the prospects in Macau but concerns regarding a potential downturn in the Las Vegas market later in the year. Despite these concerns, Wynn Resorts' stock has experienced a 9% drop, with Wynn Macau (OTC:WYNMF) seeing an 8% decline, contrasting with a 3% increase in the S&P 500 and a 4% rise in the MSCI Asia ex-Japan index.
The analyst noted that while Wynn Resorts has been performing better than some of its competitors, such as Las Vegas Sands (NYSE:LVS) and MGM Resorts International (NYSE:MGM), the recent decline in its stock price does not reflect the company's robust first-quarter results in Macau and its continued strength in Las Vegas. Based on these observations, Seaport Global Securities has revised its forecasts and price targets for the company.
In addition to the upgrade of Wynn Resorts' stock, the firm has also increased its price target for Wynn Macau, maintaining a Buy rating and raising the target from HK$9.50 to HK$10.
InvestingPro Insights
In light of Seaport Global Securities' recent upgrade of Wynn Resorts (NASDAQ:WYNN) shares, InvestingPro data provides additional context for investors. With a market capitalization of $10.28 billion and a P/E ratio that has been adjusted to 10.32 for the last twelve months as of Q1 2024, Wynn Resorts stands out in the gaming industry. The company's impressive revenue growth of nearly 65% over the last twelve months signals a strong performance, bolstered by a substantial gross profit margin of 68.8%. These figures underscore the robust financial health of Wynn Resorts, aligning with the analyst's positive reassessment.
InvestingPro Tips suggest that Wynn Resorts' stock price movements are quite volatile, which may appeal to certain investors looking for dynamic trading opportunities. Additionally, with 6 analysts having revised their earnings upwards for the upcoming period and the prediction that the company will be profitable this year, the outlook for Wynn Resorts is optimistic. For investors seeking a deeper analysis, InvestingPro offers several more tips on Wynn Resorts; use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription and unlock the full potential of these insights.
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