Wynn Resorts (WYNN) Stock Forecast & Price Target

Wynn Resorts is a high-quality luxury operator, with strong cash flow generation and a focus on developing new attractions in Macao. Their managed integrated resort in the UAE, expected to open in 2027, provides long-term development optionality. Despite recent concerns about their Macao and UAE assets, the current trading levels of WYNN stock essentially price in no value for these assets, presenting an attractive buying opportunity. The company also has a strong capital allocation strategy, including share buybacks. The company's Q1 2021 results were in-line, driven by strong performance in their Las Vegas operations offsetting softer results in Macao and Boston. Macao fundamentals remained strong, with growth in mass drop and handle, and Encore Boston's EBITDA was resilient despite external pressures. The company has a dynamic multi-factor model, based on quant factors, revealing strong sector and market relative characteristics.

Wynn Resorts is facing significant overhang due to uncertainty around their UAE asset and the lack of interest in Macau-centric names. Despite this, the risk/reward for investors is overly favorable for the stock, with current trading levels essentially doing a negative value for their Macau and/or UAE assets, according to our fundamental analysis and financial models.