Published on: September 27, 2024, 02:43h.
Last updated on: September 27, 2024, 02:43h.
Wynn Resorts (NASDAQ: WYNN) stock continued its strong performance this week, driven by an upgrade from Morgan Stanley.
Analyst Stephen Grambling raised his rating on Wynn to “outperform” from “equal-weight” and increased the price target to $104 from $97, representing a potential upside of 7.2%. Grambling believes that returning capital to shareholders could positively impact Wynn stock.
Geopolitical tensions and consumer spending concerns in China have created uncertainty, but a focus on capital returns could help mitigate risks. Wynn is also expected to see increased dividends, especially with the completion of the UAE project’s investment phase in 2024,” according to Grambling.
Wynn Resorts started construction on Wynn Al Marjan Island, its UAE integrated resort, earlier this year. The $4 billion project, which includes the region’s first regulated casino, is expected to be funded by Wynn.
China Boosts Wynn Stock
Wynn’s stock surged 7% on high volume, erasing year-to-date losses and turning the performance positive for 2024. The influence of China, including recent interest rate cuts and fiscal stimulus measures, has been a key driver of Wynn’s stock performance.
China’s stimulus measures and improved demand in Macau led Grambling to raise his earnings estimates for Wynn in 2025 and 2026. Wynn Macau, which operates two integrated resorts in Macau, is expected to benefit from these developments.
Las Vegas Outlook
Despite subdued gaming revenue in Nevada, Grambling remains optimistic about Wynn Las Vegas due to the shift towards higher-end play, new amenities, and ongoing investments in properties like Wynn and Encore.