7. Wynn Resorts, Limited (NASDAQ:WYNN)
Market Capitalization: $10.63 Billion
No. of Hedge Fund Investors: 42
Wynn Resorts, Limited (NASDAQ:WYNN) is one of the biggest casino operators and has a strong presence in Las Vegas and Macau. Wynn Macau oversees the operations in Macau and is a subsidiary of Wynn Resorts, Limited (NASDAQ:WYNN) listed on the Hong Kong exchange. The company has high-end luxury hotels worldwide.
Wynn Resorts, Limited (NASDAQ:WYNN) has obtained its first commercial gaming operator’s license in the UAE. Wynn Resorts is building a luxury resort at Wynn Al Marjan Island in Ras Al Khaimah in a joint venture with Marjan and RAK Hospitality Holding. This is a big development for the casino operator to build its first resort in a financial hub, where the millionaire population continues to grow.
Wynn Resorts, Limited (NASDAQ:WYNN) is a solid casino firm with worldwide assets. Wynn Macau’s long-term outlook remains very bright. The company is enhancing its product offering in Macau through new and innovative food and beverage concepts and unique programs. Furthermore, Wynn Macau is working on its second major concession-related project, the destination food hall, which is expected to open in 2025. Wynn Resorts, Limited is also exploring greenfield opportunities in major gateway cities like New York and Bangkok.
As Wynn Resorts, Limited (NASDAQ:WYNN) penetrates major global markets, analysts are bullish as well. Susquehanna analyst Joseph Stauff raised his price target on WYNN to $122 from $92 and kept a Positive rating on the shares. The analyst also raised his 2025 estimates for Wynn Resorts and expects a higher Macau-based EBITDA multiple of 14x compared to the previous estimate of 12x.
Baron Real Estate Fund stated the following regarding Wynn Resorts, Limited (NASDAQ:WYNN) in its fourth quarter 2023 investor letter:
“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.”
