NEW YORK ( TheStreet) -- Wynn Resorts ( WYNN) is a buy on the selloff, according to analysts. While the casino giant fell short of third-quarter profit expectations, there are several catalysts for the stock. "We would be buyers on the weakness given; what we believe to be overblown fears of VIP share erosion and general, though currently unfounded, concerns over junket liquidity in Macau; Wynn's unheralded ability to continue to expand margins in both Las Vegas and Macau; and Wynn's significant financial flexibility for growth opportunities and/or shareholder friendly capital allocations," Deutsche Bank analyst Carlo Santarelli wrote in a note. During the quarter, Wynn earned $127.1 million, or $1.01 a share, compared with a loss of $33.5 million, or 27 cents, in the year-ago period. On an adjusted basis, the company earned $1.05 a share, significantly below analysts' estimates of $1.18. Revenue climbed 30% to $1.3 billion, in line with forecasts. Macau, of course, continues to be the standout, posting a 42% surge in revenue to $951.4 million. But the recovery in Las Vegas is starting to slow, with Sin City reporting a 3.7% increase to $346.9 million. "Overall, nothing in the third-quarter results or commentary on the conference call suggest VIP demand is weakening or that credit/liquidity in Macau is changing for the worse," J.P. Morgan analyst Joseph Greff wrote in a note. Wall Street was also disappointed that Wynn didn't introduce a special dividend in conjunction with its report as many had speculated. But analysts still foresee in the cards a special dividend in the fourth quarter or early next year. "We continue to believe Wynn is well-positioned to issue a significant special dividend in the fourth quarter and note that equity funding requirements for the Cotai development are not likely to be significant until 2014 at the absolute earliest," Santarelli wrote. "As such, we do not believe harvesting capital for the Cotai project is a legitimate concern as it related to the special dividend payment."
Another opportunity for Wynn long-term would be moving into Massachusetts or Florida if gaming legislation is passed in either state. "We see each as being considerably more needle-moving for Wynn when compared to Las Vegas Sands given their respective scopes and share counts," Santarelli noted. Shares of Wynn dropped 5% in pre-market trading to $124. "In our view, this provides an attractive entry point," Greff wrote. - Reported by Jeanine Poggi in New York. Readers Also Like: >> 10 Things Still Made in America >> 10 Cult TV Shows Netflix Should Revive