In a note Thursday, analysts at Mizuho initiated Wynn Resorts Ltd (NASDAQ:WYNN) with a Buy rating and a $131 per share price target.
The firm told investors that their bullish thesis on the stock has four key pillars. The first is the upside to estimates in Macau as the market recovers and Wynn's properties display better than expected operating leverage, primarily at Wynn's Peninsula asset.
In addition, Mizuho sees continued growth in Las Vegas, fueled by the expansion of the convention center, which they believe will allow Wynn to further optimize rates.
Wynn also has a compelling valuation, according to Mizuho, which also believes the company has long-term optionality in New York and the UAE.
WYNN shares jumped more than 1% Thursday following the note, with the stock trading at $108.17 per share, as of 11:13 am ET. For the year-to-date, the stock has climbed more than 19%.