Citi raises Wynn Resorts target to $101, maintains Buy rating

Published 07/05/2025, 10:44
© Reuters.

On Wednesday, Citi analyst George Choi increased the price target on Wynn Resorts (NASDAQ:WYNN) to $101.00, up from the previous $97.00, while reiterating a Buy rating on the stock. Currently trading at $83.52, Wynn maintains a strong "Buy" consensus among analysts, with targets ranging from $83 to $132. According to InvestingPro data, the company shows several positive indicators, including strong profitability and robust financial health. Choi’s statement highlighted Wynn Las Vegas’s performance, noting that the 1Q25 EBITDA only experienced an $11 million year-over-year decline when adjusted for hold rates. This is despite facing a roughly $25 million challenge due to the Super Bowl, suggesting robust business volumes for the quarter. In fact, casino revenues saw a 4% year-over-year increase in the first quarter of 2025. The company’s overall financial performance remains strong, with trailing twelve-month EBITDA of $1.8 billion and a healthy gross profit margin of 43.5%.

Wynn Resorts’ resilience appears to have persisted into April, with high-end play compensating for weaker international play. The company reported year-over-year increases in both Revenue per Available Room (RevPAR) and slot handle for April, while group bookings met expectations. Gaming demand in Boston remained healthy, with volumes in April similar to the previous year.

The analyst also mentioned that uncertainties surrounding tariffs have caused a delay in approximately $375 million in capital expenditures at Wynn Las Vegas, most of which are related to the remodeling of the Encore Tower. However, management anticipates that this will have a minimal impact on operational expenses.

Choi concluded by affirming the Buy rating and raising the price target for Wynn Resorts. The adjustment reflects the latest operational trends and an increased price target for Wynn Macau (OTC:WYNMF), which Choi raised from HK$5.55 to HK$6.25 based on higher margin assumptions. InvestingPro analysis suggests Wynn Resorts is currently undervalued, with additional metrics and insights available in the comprehensive Pro Research Report, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.

In other recent news, Wynn Resorts reported its financial results for the first quarter of 2025, showing earnings per share of $1.07, which fell short of analysts’ expectations of $1.31. The company also reported revenue of $1.7 billion, missing the projected $1.75 billion. Despite these misses, Wynn Resorts’ operations in Macau showed a 31% increase in turnover, contributing to an EBITDA of $252.1 million on $865.9 million revenue. The company repurchased 2.36 million shares during the quarter, indicating a strategic move to return capital to shareholders. Wynn Resorts maintains a strong liquidity position with $3.2 billion available, allowing it to continue exploring development opportunities in markets like Thailand and New York. Analysts from firms like Deutsche Bank (ETR:DBKGn) and Bank of America have shown interest in Wynn’s strategic direction and competitive stance in Macau. CEO Craig Billings expressed confidence in the company’s growth prospects, despite the current economic challenges. Wynn Resorts is also focusing on its development pipeline, including projects in the UAE and potential expansions in Japan.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.