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Investing.com - Goldman Sachs has raised its price target on Wynn Resorts (NASDAQ:WYNN) to $124.00 from its previous target while maintaining a Buy rating on the casino operator’s stock. The $11.1 billion market cap company, currently trading at $107.23, has delivered impressive returns with a 25% gain year-to-date. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value assessment.
The price target increase follows Wynn’s second-quarter results, which Goldman Sachs described as "mostly in line" with expectations, though with notable differences in regional performance. Las Vegas operations delivered EBITDAR (earnings before interest, taxes, depreciation, amortization, and rent) 7% above consensus estimates. The company maintains impressive gross profit margins of 68.5%, reflecting operational efficiency. InvestingPro subscribers can access 7 additional key insights about Wynn’s financial performance.
Wynn’s Macau operations underperformed analyst expectations, with EBITDAR approximately 7% lower than Street estimates due to performance issues outside the VIP segment. Despite this regional weakness, Goldman Sachs noted that Wynn continues to lose market share in Macau.
The firm highlighted the strength of Wynn’s Las Vegas operations as particularly impressive given broader industry weakness, with Wynn’s Vegas EBITDAR growing 2% year-over-year while competitors MGM and Caesars (NASDAQ:CZR) reported mid-single-digit percentage declines in the second quarter.
Goldman Sachs pointed to Wynn’s "higher end exposure and best in class assets" as key factors in its outperformance, though it cautioned that trends may "get worse before they get better" due to softer mid-week demand in Las Vegas. The company maintains a "GOOD" financial health score according to InvestingPro analysis, with analyst consensus remaining firmly bullish on the stock.
In other recent news, Wynn Resorts has made several notable announcements. The company reported that its subsidiary, Wynn Resorts Finance, LLC, has amended its credit agreement. This amendment extends the maturity date for a portion of its loans to June 12, 2030, and adds $500 million in revolving commitments. Meanwhile, Citi has downgraded Wynn Resorts from a Buy to a Neutral rating, despite increasing its price target to $114.00. This decision is based on expectations of limited EBITDA growth in Macau’s gaming sector. On a more positive note, Goldman Sachs initiated coverage on Wynn Resorts with a Buy rating and a $122.00 price target, citing the Al Marjan project and favorable demographic exposure. Similarly, JPMorgan has started coverage with an overweight rating and a $109.00 price target, noting the potential for Wynn to return capital to shareholders through dividends from its Macau operations. These developments reflect varying perspectives from analysts on Wynn Resorts’ future performance.
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