On Monday, Stifel analysts revised their price target for Wynn Resorts (NASDAQ:WYNN), adjusting it to $123 from the previous $127 while sustaining a Buy rating for the stock.
Steven Wieczynski at Stifel highlighted Wynn Resorts as their top pick among large-cap casino operators for 2025, anticipating approximately a 46% upside based on the firm's 2026 EBITDA estimates. According to InvestingPro data, the company maintains impressive gross profit margins of 69% and shows strong financial health with a GOOD overall rating.
Wynn Resorts, along with Norwegian Cruise Line Holdings (NASDAQ:NYSE:NCLH), International Game Technology (NYSE:NYSE:IGT), and Cedar Fair (NYSE:NYSE:FUN), ranks among Stifel's favored stocks with a market capitalization above $2 billion for the year 2025. Wieczynski noted that Wynn Resorts was also a top selection for 2024, despite Macau-centric stocks not performing as well as expected due to slower recovery in gaming revenues and visitation rates.
Factors such as macroeconomic pressures, accessibility issues, and geopolitical tensions have been cited as contributing to the underperformance. InvestingPro analysis shows the company maintains healthy liquidity with current assets exceeding short-term obligations, suggesting resilience against market pressures. For deeper insights into Wynn's financial stability and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The geopolitical landscape, especially concerning the U.S. Presidential election and its potential impact on U.S.-China relations, has introduced uncertainties that have affected investor sentiment towards companies like Wynn Resorts.
However, analysts at Stifel believe that these concerns are now adequately reflected in the current stock price, particularly as Wynn shares have declined by about 10% in the past month and roughly 21% from their 2024 peak values.
The revised $123 price target is derived from a sum-of-the-parts valuation for 2026, which has been discounted back to today's dollars.
Stifel's Wieczynski also pointed out the risks associated with this target price, which include Wynn Resorts' exposure to high-end gaming volatility, political risks in Macau, elevated construction costs, and potential downturns in discretionary consumer spending. Despite these challenges, the firm maintains its positive outlook on Wynn Resorts' stock for the upcoming years.
In other recent news, Wynn Resorts Ltd (NASDAQ:WYNN). announced significant executive leadership changes and steady progress in its construction of the Wynn Al Marjan Island resort.
Ellen Whittemore will transition to a new role ahead of her retirement, and Jacqui Krum has been appointed to succeed her, starting December 2024. Meanwhile, over half of the construction on the Wynn Al Marjan Island resort has been completed, with an expected opening date in the first quarter of 2027.
The company's third-quarter earnings fell short of expectations, with consolidated property EBITDA reaching $527.7 million, primarily due to a weaker performance in Macau. However, there was a modest increase in revenue and profitability, with key developments including a 1% rise in normalized revenue in Las Vegas and a 4% growth in slot handle.
Analysts from Mizuho (NYSE:MFG) Securities, and Citi made adjustments to their stock targets for Wynn Resorts following these developments. Mizuho lowered its price target from $125 to $118, maintaining an Outperform rating.
Stifel raised its target to $125 from $103, also maintaining a Buy rating. Citi maintained a Buy rating but adjusted the target to $116 from $121. These are recent developments, reflecting the dynamic nature of the investment landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.