Wynn Resorts, Limited (NASDAQ: NASDAQ:WYNN) is among the gaming stocks with the most compelling risk-reward, according to Credit Suisse (SIX:CSGN).
The Wynn Resorts Analyst: Benjamin Chaiken upgraded the rating for Wynn Resorts from Neutral to Outperform, while revising the price target to $117.
The Wynn Resorts Thesis: There is upside to trends in Vegas, “driven in part by the convention center expansion, almost doubling the available meeting space,” Chaiken said in the upgrade note.
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Macau sentiment appears to be bottoming and, while the timeline of a recovery is “admittedly unclear,” this is “more than priced in,” the analyst stated. “When that happens, we think a mix shift into higher margin mass/premium mass gaming will benefit EBITDA margins, not reflected in Street estimates,” he added.
“We see valuation support at ~$55/share (or down 10%) a level we think implies zero value for Macau and zero value for sports betting,” Chaiken further wrote.
WYNN Price Action: Shares of Wynn Resorts had risen by 8.88% to $66.04 at the time of publication Thursday.
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