January 18, 2013 at 09:21 AM EST
Wynn Resorts Upgraded at Wells Fargo (WYNN)

Wells Fargo reported on Friday that they have casino resort operator, Wynn Resorts, Limited(WYNN).

The firm has increased their rating for WYNN from “Market Perform” to “Outperform,” and also raised the company’s price target from a range of $97-$115 to a range of $140-$160. This price target suggests up to a 21.5% increase from the stock’s current price of $125.46.

An analyst from the firm commented, “Following our non-consensus and cautious call on the Macau gaming market and WYNN last year, we are turning bullish on the market in 2013 and beyond. We believe WYNN is one of the best companies in our space, and is likely to outperform over the next twelve months based on: (1) our bullish view on Macau in 2013 and the medium term, (2) 2013 estimates are achievable, with WYNN expected to participate in the recovery of the VIP market this year, (3) very low expectations and sentiment, (4) supportive Las Vegas trends, with 2013 expected to be strong for WYNN, (5) potential recovery in Macau market share as competitors take a stricter interpretation of the smoking ban, (6) excellent assets and strong medium-term growth potential, and (7) strong dividend growth, with potential annual dividends of $11/share by 2017. While WYNN’s near-term earnings growth in Macau has clearly flattened out, this is well known and we believe WYNN’s stock is increasingly appealing to income and/or medium-term oriented investors with very strong cash generation and a strong medium-term growth pipeline. We are increasing our 2013 EPS estimates from $5.49 to $5.61.”

Wynn Resorts shares were up $1.74, or 1.41% during premarket trading Friday. The stock has increased 14.5% in the past year.

The Bottom Line
Shares of Wynn Resorts (WYNN) have a 1.62% dividend yield, based on last night’s closing stock price of $123.46. The stock has technical support in the $115-$120 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.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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