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Investing.com - UBS upgraded Wynn Resorts (NASDAQ:WYNN) from Neutral to Buy on Thursday, while significantly raising its price target to $147.00 from $101.00. The stock, which has delivered an impressive 65% return over the past year, is currently trading near its 52-week high of $125.45.
The upgrade is based on higher Macau estimates and a more optimistic outlook for Wynn’s AI Marjan resort in the UAE, which UBS believes will gain market recognition following Wynn’s December investor day. According to InvestingPro data, the company maintains impressive gross profit margins of 68% and has received a "GREAT" financial health score.
UBS estimates the UAE property will generate run-rate adjusted property EBITDAM of $730 million, representing 16% upside to Wynn’s base case estimate of $625 million at steady state, and falling toward the high end of the company’s $500-800 million guidance range.
The investment firm anticipates Wynn’s position as the only gaming operator in the UAE will provide a significant advantage in capturing loyalty among ultra-high-net-worth international customers.
UBS projects the UAE property could reach steady state in 2029, approximately two years after its early 2027 opening, with performance substantially better than initially forecast.
In other recent news, Wynn Resorts Ltd . announced that its subsidiary, Wynn Macau, Limited, plans to redeem $1 billion in 5.50% senior notes due in 2026, with the redemption set for September 2025. Additionally, Wynn Macau is set to issue $1 billion in 6.750% senior notes due in 2034, with the issuance scheduled for August 2025. These financial maneuvers reflect Wynn’s strategic management of its debt obligations. Meanwhile, several analysts have adjusted their price targets for Wynn Resorts. Mizuho increased its target to $126, citing improved conditions in Macau and potential recovery among mass and premium mass players. Macquarie raised its target to $124, emphasizing Wynn’s luxury appeal and undeveloped assets. Stifel set its target at $130, highlighting the company’s solid performance in Las Vegas and Boston. These developments collectively underscore the evolving financial landscape for Wynn Resorts.
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