Home / Business and Economy / Wynn Resorts Surges on Citi Upgrade, UAE Project Hailed
Wynn Resorts Surges on Citi Upgrade, UAE Project Hailed
21 Nov
Summary
- Citi upgraded Wynn Resorts to 'buy', raising its price target by $35.50.
- The UAE project is highlighted as a significant casino development opportunity.
- Wynn Resorts stock has already risen 36% this year, outperforming peers.
Wynn Resorts' investment case is deemed compelling by Citi, leading to an upgrade from neutral to buy and a significant price target increase to $160. Analyst James Hardiman identifies Wynn as the "premium operator" in the casino sector, noting its strong year-to-date stock performance.
The company's inorganic growth potential is a major factor, particularly the forthcoming project in the United Arab Emirates, slated for an early 2027 opening. This development is considered the most substantial casino project on the immediate horizon. Upon completion of various domestic and international growth initiatives, Wynn anticipates freeing up over $1 billion in capital by 2027.
This substantial capital influx offers Wynn strategic options, including enhanced dividend payouts, aggressive share repurchases, or investment in new growth ventures. Furthermore, Wynn is seen as a hedge against potential declines in Las Vegas tourism, demonstrating resilience amidst broader Strip performance concerns.
