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Deutsche Bank upgrades Wynn as Palace ramps up

Wynn Resorts has been upgraded to buy from hold by analysts at Deutsche Bank due to a ramp up in the mass sector at Wynn Palace after floor reconfigurations and ongoing strength in the VIP market.

“Our checks give us confidence that the reconfiguration of the mass floor has stimulated improved mass play,” the bank said in a note. “Accordingly, we think 3Q17 consensus forecasts are beatable and we believe out period upward revisions will drive shares higher.”

The price target has been raised from $138 to $150.

Deutsche Bank notes that the shares have pulled back 8 percent since the company reported Q2 earnings, though says its call is not a buy on the dip. It says it believes consensus forecasts for Q3 are beatable and upward revisions will drive the shares higher.

“We believe; 1) continued VIP strength will drive positive Macau market GGR revisions, 2) stocks will follow Macau market GGR, and 3) accelerating discretionary FCF will garner incremental investor attention,” it said.

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