On Thursday, Wynn Resorts (NASDAQ:WYNN) received an upgrade from a Hold to a Buy rating by Argus, with the firm setting a new price target of $110. The upgrade is based on the anticipation of a quicker recovery in Macau, robust performance in Las Vegas, and solid results from the Encore Boston Harbor.
Argus believes that the expected faster-than-anticipated rebound in Macau's market, combined with the strength observed in the Las Vegas operations, justifies a higher valuation for Wynn Resorts. The company's properties have been experiencing nearly full occupancy, and sales from retail tenants in Macau have been strong.
The firm's long-term rating for Wynn Resorts remains at Buy, reflecting confidence in the company's future. Argus points to the expected benefits Wynn will reap from the return of convention groups to Las Vegas. Additionally, the expansion of its online sports betting business is seen as a positive driver for the company's growth.
The $110 price target represents a significant increase from the previous level, indicating a positive outlook on Wynn Resorts' stock performance. This adjustment reflects the firm's analysis of the company's current operational success and its potential to capitalize on market opportunities.
InvestingPro Insights
The recent upgrade of Wynn Resorts (NASDAQ:WYNN) by Argus to a Buy rating with a price target of $110 aligns with several positive indicators highlighted in real-time data from InvestingPro. With a market capitalization of $10.61B and an adjusted P/E ratio over the last twelve months as of Q1 2024 standing at 10.65, Wynn Resorts showcases a solid valuation metric that investors often seek. The company's impressive revenue growth of 64.91% over the last twelve months further underpins the optimism surrounding its recovery and expansion efforts.
InvestingPro Tips for Wynn Resorts emphasize the company's high shareholder yield and the fact that 7 analysts have revised their earnings upwards for the upcoming period, suggesting that the market has a favorable view of the company's future profitability. Moreover, Wynn's gross profit margins are robust at 68.8%, reflecting efficient operations and strong pricing power. For investors looking to dig deeper into Wynn Resorts' financials and future prospects, InvestingPro offers additional tips—there are 6 more tips available, which you can access with a subscription. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
These insights and metrics provide a more comprehensive view of Wynn Resorts' financial health and market position, which could be invaluable to investors making informed decisions about their investments in the hospitality and gaming sector.
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