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Mizuho Securities launched coverage on Wynn Resorts (NASDAQ:WYNN) on Thursday with Buy rating.
Analyst Ben Chaiken said the firm’s bullish thesis on the casino stock is based on upside to consensus estimates in Macau as the market recovers and the expectation for continued growth in Las Vegas, fueled by the expansion of the convention center. In general, Wynn’s (WYNN) properties were also noted to display better than expected operating leverage, primarily at Wynn’s Peninsula asset.
Chaiken also pointed to the compelling valuation on Wynn Resorts (WYNN) and the long-term optionality in play with New York and UAE expansion in the mix.
Mizuho’s EBITDA estimate factors in more upside than the Street, due primarily to the view that Macau will see improved operating leverage, as well as potential for market share gains. The firm’s price target of $131 is based on of a sum of the parts analysis using our 2025 EBITDA estimates.
Shares of Wynn Resorts (WYNN) opened trading on Thursday with a 2.08% swing higher. The casino stock is up more than 17% on a year-to-date basis and trades above its 200-day moving average.