Shares of Wynn Resorts (WYNN) - Get Report hit yet another downdraft on Monday following China's announcement of retaliatory tariffs against the U.S., solidifying an all-out trade war between the two countries that investors feel will negatively impact Wynn's sizeable operations in Macau.
Shares of Wynn were down more than 6%, or $8.30, to $121.59 on the New York Stock Exchange after China announced it would increase tariffs on as much as $60 billion worth of U.S. imports to as high as 25% following last week's collapse of trade talks between the world's two largest economies.
China said the tariff increase on around 5,000 product groups would take effect on June 1. The U.S. last week raised tariffs on $200 billion of China-made imports to 25%.
Wynn stock has been hit particularly hard amid concerns among investors and analysts that the company's sizable operations in China will be negatively impacted by higher tariffs. Wynn Resorts gets about 75% of its revenue from China, according to FactSet.
Adding to the casino and resort operator's woes was a miss on first-quarter revenue forecasts on Friday. Wynn reported on Friday higher-than-expected adjusted earnings but revenue fell 4% from a year earlier and was below analysts' estimates.
Not everyone feels Wynn is a washout, however. Analysts at Stifel Nicolaus on Friday reiterated their buy rating on the company and boosted their price target for the stock to $157 from $146. On April 25, Bank of America upgraded Wynn to a buy from neutral and raised its price target to $165 from $150.