Wynn Resorts Ltd. (WYNN) could be the subject of the next big blockbuster deal, according to TheStreet's founder and Action Alerts Plus portfolio manager Jim Cramer.
In Cramer's Mad Money on CNBC, he explained that this week's $67 billion Cigna Corp. (CI) takeover of Express Scripts Holding Co. (ESRX) has ignited the dealmaking landscape yet again. But the next target may not be in healthcare, but rather in casinos and resorts.
According to Cramer, both Wynn and MGM Resorts International (MGM) had strong performances Thursday, March 8, after reporting solid year-over-year growth in the Macau market. Wynn stock climbed 6.35% to $179.11 and MGM gained 3.37% to $35.91.
Cramer said the rally in Wynn's stock could be a sign that the company is beginning to turn a new corner after CEO and founder Steve Wynn stepped down amid a bevy of sexual misconduct allegations stacked against him. Now that Steve Wynn is out and the stock has gained some upward momentum, it could be time for the company to strike a deal.
"I think Wynn might actually be acquired by another casino company now that Steve Wynn has stepped down from his operating role in the wake of those admittedly disturbing sexual misconduct allegations," Cramer said. "I think it's a natural takeover target for, say, Las Vegas Sands Corp. (LVS) or even MGM. It doesn't rally 10 bucks in one session idly for nothing."
Despite the fallout from Steve Wynn's alleged misconduct -- which this week included the departure of two board members from the company -- shares of Wynn managed gains of 6.24% so far this year. In the last 12 months, shares have rallied nearly 80%.
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