Shares of Wynn Resorts (NASDAQ: WYNN traded modestly higher Monday after a sell-side psychoanalyst lifted his toll direct on the stock, citing a strong rebound in Macau gross gaming revenue (GGR).
In a mention to clients Monday, JP John Pierpont Morgan analyst Joseph Greff boosted his damage forecast on the gaming inventory to $141 from $131, implying upside of 28% from today’s close. His cost direct on Wynn is considerably higher up the Wall Street consensus of $120.07.
The analyst expects Wynn Macau and Wynn Palace — the operator’s two venues in the Chinese soil — testament nick first-quarter earnings before interest, taxes, wear and tear and amortization (EBITDA) of $163 trillion on sack revenue of $602 million. That puts Wynn on gait for full-year Macau immediate payment flow and sales of $752 million and $2.5 billion, respectively.
In Macau, analysts anticipate Wynn to brand 2023 revenue that’s 66% of what was seen inwards 2019, prior to the coronavirus pandemic, and earnings before interest, taxes, depreciation, and amortization (EBITDA) that’s 73% of 2019 levels, but there’s potency for those percentages to thump forecasts because Wynn is grabbing marketplace share from Macau rivals.
Wynn Macau 2024 Outlook Compelling, Too
Wynn stockpile is upward 33.28% year-to-date – good for 1 of the best showings among all gaming equities and S&P 500 members.
That’s also a signalize markets may make already priced inwards the mass of the upright word pertaining to the 2023 Macau recovery. However, there’s potential upside to that thesis because this year’s Earnings Before Interest Taxes Depreciation and Amortization and GGR estimates in Macau allow way for plentiful ontogeny in 2024 as the special administrative region’s (SAR) gaming industry workings its way plump for to pre-pandemic levels. Greff estimates Wynn will stake sack up revenue of $3.4 billion and EBITDA of $1.2 one thousand million in Macau next year.
We’d ilk to imagine our new estimates are moderately based and not a best-case scenario, so we conceive on that point is upward revisal potentiality to these above-consensus forecasts,” noted the analyst.
The all-time heights on Wynn stockpile is around $248 — a unwavering non seen since Mar 2014.
More to Come for Macau Recovery
Perhaps adding to the temptingness of Wynn shares is the tip that analysts, including Greff, escort more out front for the Macau resurgence.
“The Macau retrieval is inward its ahead of time innings. We trust the submit retrieval in Macau is existence driven by wealthy mainlanders, which is impulsive higher ontogenesis inward the insurance premium mass and direct VIP segments, segments inward which WYNN has a important front and potential allows it, in the near term, to show continued securities industry portion out gains, congeneric to 2019,” added the analyst.
Greff’s first-quarter estimates for Wynn and Encore on the Las Vegas weren’t changed, but he did slightly advance his hard cash stream forecast for Encore capital of Massachusetts Harbor to $58 million from $55 million. In less than iv years, that locus has become I of the top-grossing regional casinos in the US.