On Friday, Macquarie maintained its Outperform rating on Wynn Resorts (NASDAQ:WYNN) and increased the price target to $128 from $122. The firm holds a positive outlook on the company's potential, particularly in Macau, where the expectations for the market recovery may be understated. Wynn Resorts is anticipated to continue gaining market share, especially as the recovery extends beyond the base mass market segment.
The analyst pointed out that Wynn Resorts' stock multiples are around 9 times the 2024 estimated earnings, suggesting that among large gaming stocks, Wynn has significant potential for both estimate and stock price increases. The valuation of Wynn Resorts reflects not only its operational performance but also the value of its less recognized assets.
Specifically, Macquarie identified over $10 of value in Wynn Resorts' underappreciated assets, which include contributions from Al Marjan Island, valued at approximately $6, WynnBet at $2, and the 38-acre parcel of land in Las Vegas estimated at $4. These assets provide additional layers of value to the company's overall financial picture.
The firm's analysis highlights Wynn Resorts' strategic positioning and asset base, which are expected to contribute to the company's growth trajectory. The revised price target of $128 reflects confidence in Wynn Resorts' ability to outperform in the gaming industry, driven by a strong recovery in Macau and the inherent value of its diversified asset portfolio.
InvestingPro Insights
As Wynn Resorts (NASDAQ:WYNN) continues to attract positive attention from analysts, real-time data from InvestingPro shows a robust financial landscape for the company. With a market capitalization of 11.9 billion USD and a P/E ratio that has adjusted down to 15.13 from the last twelve months as of Q4 2023, Wynn Resorts stands out in the gaming sector. The company's revenue growth is particularly striking, with an impressive 73.87% increase over the last twelve months as of Q4 2023, indicating a strong recovery trajectory that aligns with Macquarie's outlook.
InvestingPro Tips highlight several key indicators for investors considering the company's stock. Analysts have revised their earnings upwards for the upcoming period, signaling confidence in Wynn Resorts' financial prospects. Moreover, the stock has shown a strong return over the last three months, with a 17.4% price total return, underscoring the potential for stock price increases. Additionally, the company is not only profitable over the last twelve months but also expected to maintain profitability this year, as per analyst predictions.
While the RSI suggests the stock is currently in overbought territory, the overall performance and strategic assets of Wynn Resorts, as noted by Macquarie, could justify the current investor enthusiasm. For those looking for deeper analysis and more InvestingPro Tips, there are 7 additional tips listed on InvestingPro's platform for Wynn Resorts, which can be accessed at: https://www.investing.com/pro/WYNN. To enrich your investment strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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