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Investing.com - Mizuho (NYSE:MFG) has raised its price target on Wynn Resorts (NASDAQ:WYNN) stock to $126.00 from $122.00 while maintaining an Outperform rating. Currently trading at $106.41, Wynn appears undervalued according to InvestingPro analysis, with six analysts recently revising earnings estimates upward.
The investment firm cited improving conditions in Macau as a key factor in its decision, noting clear signs of recovery in the region. Mizuho specifically highlighted potential recovery among mass and premium mass day trip players in Macau during the summer months, which could positively impact hold rates and EBITDA margins. The company’s impressive 68.32% gross profit margin and $6.97 billion in revenue demonstrate its operational strength.
Mizuho also observed that Wynn’s Las Vegas operations are "weathering the storm well" within the company’s market segment. The firm pointed to what are likely lower third-quarter expectations and potential for a stronger fourth-quarter rebound, supported by group business acceleration. The company’s resilience is reflected in its strong 32.76% price return over the past six months, with InvestingPro rating its overall financial health as "GOOD."
The research note mentioned that while investors might gravitate toward Las Vegas Sands (NYSE:LVS) in the current scenario, Wynn theoretically has "significant upside to margins" that could benefit shareholders.
Mizuho added that Wynn’s United Arab Emirates project remains "very underappreciated" by the market and will likely support share price growth heading into the company’s investor day.
In other recent news, Wynn Resorts reported its second-quarter earnings for 2025, which revealed a shortfall in earnings per share (EPS) compared to analyst expectations. The company posted an EPS of $1.09, missing the projected $1.20, resulting in a negative surprise of 9.17%. However, revenue was in line with forecasts, totaling $1.74 billion. Stifel has raised its price target for Wynn Resorts to $130.00 from $113.00, maintaining a Buy rating, following the company’s solid performance in Las Vegas and Boston. The firm highlighted that Wynn’s high-end positioning has helped it withstand challenges faced by other competitors on the Strip. Additionally, Macquarie increased its price target for Wynn Resorts to $124.00 from $110.00, keeping an Outperform rating. Macquarie cited Wynn’s appeal as a "premium luxury value stock" and noted its "irreplaceable brand and locations." The firm also mentioned ongoing construction in the UAE, expected to open in 2027.
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