Credit Suisse upgrades Wynn Resorts’ shares
Credit Suisse on Friday upgraded Wynn Resorts Ltd. to "outperform" from "neutral" based on what it called a compelling valuation for the casino operator.
Analyst Joel Simkins said in a note to clients that Wynn Resorts shares have fallen 20 percent since their July highs of $165.25 reached on July 22. Shares of Wynn Resorts have traded over the past 52 weeks from a low of $88.55 to a high of $172.58.
"We think the recent pullback gives investors an opportunity to buy the pre-eminent, high-end gaming brand at a more reasonable multiple," Simkins said.
The Las Vegas-based casino operator's shares have slid in recent weeks as concerns have intensified that China's growth may start to slow.
"While investors are skittish regarding a global macro slowdown, as fears have shifted from the U.S. and Europe to China, we are taking a long-term view on Wynn," Simkins said. "We believe Macau is still in the early-to-middle innings of a long-term ramp and Wynn is best positioned to capture VIP growth and market share."
Simkins expected Wynn's Cotai project to add $18 in value to its share price. In September, the company received approval from the Macau government to develop 51 acres on the Cotai Strip. The Wynn resort in Cotai is expected to open in 2015.
Shares of Wynn lost $3.52, or 2.66 percent, Friday to close at $129.06 on the Nasdaq Global Select Market.
Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.
