The firm said it reduced its rating on the destination casino resorts developer, owner and operator based on the company's new valuation, which implies a 4% downside from current levels.
Also contributing to Barclay's downgrade is Wynn's large exposure to the shrinking VIP market in China's Macau gaming hub. VIP and high stakes gamblers have been avoiding the Macau casinos after the Chinese government began its anti-corruption crackdown. Revenue in Macau has been declining ever since.
"The company's new casino on Cotai [in Macau], Wynn Palace is scheduled to open in March 2016, but, like the other new builds in the market, could be held up by delays. In Las Vegas, Wynn's exposure to the high-end Baccarat gamer could cause that property to underperform in the near term," Barclays said in an analyst note.
Shares of Wynn Resorts closed at $108.79 on Thursday afternoon.
Separately, TheStreet Ratings team rates WYNN RESORTS LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate WYNN RESORTS LTD (WYNN) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including deteriorating net income, feeble growth in the company's earnings per share and a generally disappointing performance in the stock itself."