4) Wynn Resorts, Limited (NASDAQ:WYNN)
Number of Hedge Fund Holders: 42
Wynn Resorts, Limited (NASDAQ:WYNN) owns and operates hotels and casino resorts. It provides amenities like guest rooms and suites, restaurants, golf courses, spas, bars, and other vacation-related and leisure facilities.
Wynn Resorts, Limited (NASDAQ: WYNN) continues to possess attractive long-term growth opportunities in Macao, backed by its high-end iconic brand. As a result, the company should be able to capture gross gaming revenue share moving forward. Its Las Vegas revenue and adjusted EBITDA margins are expected to be supported by cost-efficiency improvements and revenue scale for the upcoming years. The company’s strategic locations in critical tourist destinations such as Macau and Las Vegas are expected to act as major strengths.
Considering the renewal of the gaming concession contract for another 10 years, Wall Street believes that Wynn Macau SA is well-placed to capitalize on the region’s growth. In its 2Q 2024 results, Wynn Resorts, Limited (NASDAQ:WYNN) highlighted its strength throughout its business. The company continues to focus on growth as the construction of Wynn Al Marjan Island in the UAE has been advancing rapidly. Also, Wynn Resorts, Limited (NASDAQ: WYNN) recently finalized a transaction to acquire the pro-rata share of land on Al Marjan Island Three. This should help the company secure a substantial land bank for strong future development opportunities.
As of 2Q 2024, 42 hedge funds held long positions in Wynn Resorts, Limited (NASDAQ:WYNN). Analysts at Seaport Res Ptn upgraded the shares of Wynn Resorts, Limited (NASDAQ:WYNN) from a “Hold” rating to a “Strong-buy” rating on 30th May. Baron Funds, an investment management company, released its fourth quarter 2023 investor letter and mentioned Wynn Resorts, Limited (NASDAQ:WYNN). Here is what the fund said:
“The shares of Wynn Resorts, Limited (NASDAQ:WYNN), an owner and operator of hotels and casino resorts, declined modestly in the most recent quarter, in part due to concerns about economic weakness in China.
We remain optimistic about the multi-year prospects for the company. We believe the ongoing re-emergence of business activity in Macau will drive additional shareholder value. If cash flow returns to the level achieved in 2019 prior to COVID-19, we believe Wynn’s shares will increase 30% to 50% higher than where they have recently traded.
We believe additional drivers for future value creation beyond a re-emergence in Macau business activity include: (i) our expectation for long-term growth opportunities in the company’s U.S.-centric markets of Las Vegas and Boston, including an expansion of Wynn’s Encore Boston Harbor resort; (ii) Wynn’s plans to develop an integrated resort in the United Arab Emirates with 1,500 hotel rooms and a casino that is similar in size to that of Encore Boston Harbor; (iii) opportunities to improve cash-flow margins by rightsizing labor and achieving lower staff costs in Macau; (iv) the possibility that Wynn is granted a New York casino license; and (v) an expansion in the company’s valuation multiple to levels achieved prior to the pandemic.”
