Raytheon awarded $71 million in Navy contracts for missile systems
Investing.com -- UBS Global Research has upgraded Wynn Resorts (NASDAQ:WYNN) to a "buy" rating from "neutral," citing stronger prospects for its Al Marjan resort in the United Arab Emirates and improving trends in its Macau operations.
In its note dated Thursday, UBS noted that the market has yet to fully recognize the potential of the Al Marjan project, a perception it expects will shift following Wynn’s investor day in December.
UBS raised its run-rate adjusted property EBITDAM estimate for Al Marjan to $730 million, 16% above Wynn’s base-case guidance of $625 million.
UBS values the project at roughly $34 per share, well above the $7-$12 currently implied by the market.
UBS also raised its forecasts for Macau, now projecting marketwide gross gaming revenue growth of 8% year-over-year in 2025 and 5% in 2026.
The brokerage expects Wynn to sustain or grow its market share, in contrast to consensus expectations of share erosion. UBS’s valuation for Wynn’s Macau business has been lifted to $76 per share, up from $49 previously.
UBS also raised its price target for WYNN to $147 from $101, reflecting increased confidence in both Al Marjan and Macau growth prospects.