On Thursday analysts at Deutsche Bank boosted its price target on casino and hotel operator Wynn Resorts, Limited (WYNN) as fourth quarter earnings are expected to be in-line with Wall Street consensus.
The analysts backed a “Buy” rating for Wynn and increased its price target from $135 to $144. This new target suggests an +18.5% upside to Wednesday’s closing price of $121.52.
“Based on our new property level and total EBITDA estimates, which we note are largely unchanged, we expect Macau property level EBITDA of $287 mm (vs. consensus of $289 mm) and Wynn LV property level EBITDA of $94 mm (vs. consensus of $97 mm),” said Deutsche Bank analyst Carlo Santarelli.
Also, the increase in price target reflects a new outlook on Wynn’s Macau property.
Wynn shares were flat during premarket trading on Thursday. The stock is up +13.14% over the past year.
The Bottom Line
Shares of Wynn Resorts (WYNN) have a 1.65% dividend yield, based on last night’s closing stock price of $121.52. The stock has technical support in the $110-$115 price area. If the shares can firm up, we see overhead resistance around the $125-$130 price levels.
Wynn Resorts, Limited (WYNN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.