Deutsche Bank has reaffirmed its Buy rating on Wynn Resorts (NASDAQ: NASDAQ:WYNN) with a steady price target of $122.00.
The endorsement comes after the bank's analyst attended the WYNN Investor Day event held at Wynn Las Vegas. The event provided a detailed overview of Wynn Resorts' most significant development project since the launch of Wynn Cotai.
The analyst believes this project has enhanced the company's long-term value proposition.
The presentation included a broad overview of future projections for Wynn Resorts, with a focus on the financial potential of the company. Free cash flow (FCF) estimates, based on 2026 consensus forecasts, suggest a substantial yield of approximately $15-17 per share. This figure does not adjust for minority interests in Macau.
According to the analyst, Investor Day successfully achieved its goal of highlighting the development project as a key driver of future value for Wynn Resorts. The project was positioned as a transformative endeavor that could significantly influence the company's trajectory.
The bank's assessment suggests confidence in Wynn Resorts' strategic direction and its ability to deliver on its financial targets. The projected free cash flow figures provide a glimpse into the financial health and operational efficiency that Wynn Resorts could achieve in the near future.
In other recent news, Wynn Resorts has seen several significant developments. Financial research firm CFRA raised its price target for the company to $123, citing an expected return to normalized revenue and EBITDA.
CFRA also noted potential for upside if stimulus measures in China boost consumer spending. However, the firm lowered its adjusted EBITDA estimates for Wynn Resorts for 2024 and 2025.
Wynn Resorts successfully secured the first commercial gaming operator's license in the United Arab Emirates, marking a notable expansion into the UAE market. This aligns with the UAE's recent policy shift to legalize gambling to boost economic competitiveness.
Morgan Stanley upgraded Wynn Resorts from Equal-weight to Overweight, reflecting the company's growth potential in the UAE and adjusted the price target to $104. Wynn Resorts' indirect subsidiary, Wynn Macau (OTC:WYNMF), extended the maturity date of its outstanding loans to September 16, 2028, providing a longer timeframe to manage its financial obligations.
Lastly, shares of Chinese companies listed in the U.S., including Wynn Resorts, experienced a significant upswing following the announcement of substantial stimulus measures by Beijing.
InvestingPro Insights
Recent data from InvestingPro adds further context to Deutsche Bank's optimistic outlook on Wynn Resorts (NASDAQ:WYNN). The company's market capitalization stands at $11.35 billion, reflecting its significant presence in the casino and resort industry. Wynn's impressive gross profit margin of 69.02% for the last twelve months ending Q2 2024 underscores its operational efficiency, aligning with the positive free cash flow projections highlighted in the Investor Day presentation.
InvestingPro Tips reveal that Wynn Resorts has demonstrated strong returns over the last month and three months, with price total returns of 33.77% and 21.78% respectively. This recent performance could be indicative of growing investor confidence in the company's strategic initiatives, including the development project discussed at the Investor Day event.
Moreover, analysts predict that Wynn Resorts will be profitable this year, which supports Deutsche Bank's bullish stance. The company's P/E ratio (adjusted) of 11.51 suggests that the stock may be undervalued relative to its earnings potential, potentially offering an attractive entry point for investors who share Deutsche Bank's positive outlook.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and insights on Wynn Resorts, with 9 more tips available on the platform.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.