Shares slumped after a note from Sterne Agee analyst David Bain said gaming revenue from Macau, an island in China that permits gambling, will see a double-digit decline.
"Macau table-only gross gaming revenue [was] $410 million from June 1 to June 7," Bain wrote, adding that the run rate points to a 46% year-over-year decline in gross gaming revenue, totaling $1.8 billion.
"While the Macau market should continue to generate sequentially 'less bad' results from a growth bottom in February, we expect near-term 2Q15 consensus estimate downward revisions and additional caution directed at [calendar year 2016] market estimates post additional smoking restrictions to be implemented by the Macau Government," Bain added.
That report sent the share price of Wynn Resorts lower. Sterne Agee said Wynn Resorts maintains an 11.3% market share in the region, month to date. That's more than MGM Resorts International's (MGM) 7.6% share, but less than Las Vegas Sands' (LVS) share of 20.2%, the report said.
Sterne Agee maintains a buy rating with a $109.14 price target.
Priced at $102.45 at the market's close, Wynn's stock is trading at about 18 times greater than its per-share earnings last year. The share price of Wynn Resorts has fallen 31% since the start of the year.
The analysts at Argus Research Group maintain a hold rating. UBS has a neutral rating, while JPMorgan holds an overweight rating.
TheStreet's 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, weak operating cash flow and feeble growth in the company's earnings per share."
You can view the full analysis from the report here: WYNN Ratings Report