Wynn Resorts (WYNN) - Get Report shares rose Tuesday after Argus Research upgraded the casino operator to buy from hold with a price target of $160, citing optimism about its properties in Las Vegas, Boston and Macau.
“The rollout of coronavirus vaccines and increased leisure travel” will boost Wynn’s fortunes in Vegas and its property in Boston, Argus analyst John Staszak wrote in a commentary cited by Barron’s.
"In addition, we expect Wynn to benefit from a recovery in Macau, helped by its focus on the premium mass and luxury markets,” he said, according to Seeking Alpha. “The company has also launched its iGaming/sports betting platform in 10 states.”
Wynn recently traded at $134.27, up 2.44%. It has soared 85% in the past six months amid investor optimism about vaccines and economic recovery, well ahead of the S&P 500's rise of 22% over the same time period.
Argus estimates Wynn will lose $2.70 a share this year, less than the previous prediction of $2.80, Barron’s reports. Argus lifted its 2022 profit estimate to $2 a share from $1.85. Wynn “will have enough cash to operate until the end of 3Q21 even amid modest revenue,” Staszak said.
In February, Wynn announced a public offering of 5.5 million shares. Deutsche Bank, Goldman Sachs and Bank of America were lead bookrunning managers for the offering.
Analyst Thomas Allen said in research note that the Las Vegas casino market is beginning a “fast, strong recovery, with especially positive booking trends,” citing his visit to the U.S. gaming region last week.