Wynn Resorts, Limited (NASDAQ: WYNN) shares have been in focus amid the post-COVID-19 pandemic rebound in the gambling industry.
The company has an upside to market share and EBITDA margins, according to Mizuho Securities.
The Wynn Resorts Analyst: Ben Chaiken initiated coverage of Wynn Resorts with a Buy rating and price target of $131.
The Wynn Resorts Thesis: There is upside to market share and EBITDA margin estimates in Macau, as the market recovers and the company's properties, particularly its Peninsula asset, exhibit better operating leverage, Chaiken said in the initiation note.
While Wynn's ADR (average daily rate) growth in Las Vegas is higher than it was pre-pandemic, there seems to be "potential for continued robust growth," the analyst stated. "We believe Wynn should have an almost 20% buffer/premium on rate relative to the rest of the market given incremental demand generated by a larger corporate/group presence," he added.
"Wynn owns all of its real estate (other than Boston), providing differentiation vs peers and future optionality," Tong further wrote.
WYNN Price Action: Shares of Wynn Resorts had risen by 2.58% to $109.17 at the time of publication on Thursday.