Macquarie raises Wynn Resorts stock price target to $124 on luxury appeal

Published 08/08/2025, 19:16
© Reuters.

Investing.com - Macquarie has raised its price target on Wynn Resorts (NASDAQ:WYNN) stock to $124.00 from $110.00 while maintaining an Outperform rating, citing the company’s appeal as a "premium luxury value stock." According to InvestingPro data, the stock has delivered an impressive 33.78% return over the past six months, with current analysis suggesting the shares remain slightly undervalued.

The research firm highlighted Wynn’s "irreplaceable brand and locations" along with undeveloped assets and ongoing construction in the UAE, which is expected to open in 2027. Macquarie noted that while Vegas comparisons will be challenging in 2025, this appears to be already reflected in the share price.

Wynn Resorts reported second-quarter property EBITDAR of $552 million, down 3% year-over-year but in line with consensus estimates. The company maintains impressive gross profit margins of 68.78% and has achieved profitability over the last twelve months. Las Vegas and Boston operations outperformed expectations, offsetting weaker results in Macau, which was negatively impacted by VIP hold.

In Las Vegas, the company achieved a new second-quarter EBITDAR record, with 14.5% growth in total casino revenues. Management indicated that this positive momentum continued into July, with forward bookings accelerating and strong group/convention business projected for the fourth quarter and into 2026. Discover more insights about Wynn’s performance with InvestingPro, which offers exclusive analysis and 6 additional ProTips for informed investment decisions.

During the second quarter, Wynn Resorts repurchased $158 million of shares, demonstrating management’s aggressive share buyback strategy and confidence in the company’s future. The Al Marjan project in the UAE remains on track for a 2027 opening, which Macquarie expects will contribute to a "significant inflection in FCF" as capital expenditure cycles slow.

In other recent news, Wynn Resorts reported its second-quarter earnings for 2025, revealing a shortfall in earnings per share compared to analyst expectations. The company posted an EPS of $1.09, which was below the projected $1.20, marking a negative surprise of 9.17%. However, revenue met forecasts, coming in at $1.74 billion. In response to the earnings report, Stifel raised its price target for Wynn Resorts to $130 from $113, maintaining a Buy rating on the stock. Stifel highlighted Wynn’s strong performance in the Las Vegas and Boston markets as a key factor for the upgrade. The firm noted that Wynn’s high-end positioning in Las Vegas has helped it withstand some challenges faced by other competitors on the Strip. These developments reflect recent trends and assessments from financial analysts regarding the company’s market position and performance.

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