Wynn Resorts gets analyst upgrade
An analyst has boosted his rating for Wynn Resorts Ltd., citing his research that revenue growth in Macau would continue at a higher-than-expected rate.
The Las Vegas-based company's stock rose $1.27, or 1.1 percent, to $118.98 in premarket trading. But by the end of trading Thursday on the Nasdaq Global Select Market, Wynn shares had settled back to $116.72, down 6 cents, or 0.05 percent for the day.
The Macau gambling market recorded revenues of $23.5 billion in 2010, which was up 58 percent on a year-to-year basis. Aside from Wynn Resorts, Las Vegas Sands Corp. and MGM Resorts International also operate Macau casinos.
In a note to clients, Janney Capital Markets analyst Brian McGill said that despite increased competition, Wynn Resorts should hold onto a 15 percent share of the Macau market, but he acknowledged that could be a conservative estimate.
He also expected Wynn Resorts to benefit from "the ongoing recovery" in Las Vegas, with earnings before interest, taxes, depreciation and amortization, or EBITDA, growing to $345 million this year and $420 million in 2012.
McGill lifted Wynn Resorts' rating to "buy" from "neutral."
