Deutsche Bank has cut its share price target for Wynn Resorts to $215 from $221, though the firm reiterates its buy rating and says all indications point to upside from its forecasts in Macau.
The model was tweaked to reflect Wynn’s recent agreement to settle a lawsuit with Universal Entertainment, the removal of the promissory note owed to the Japanese firm and the potential higher interest rate from a new funding accord taken out with the bank. It also takes into account Wynn’s decision to raise its dividend by a $1 to $3.
“We continue to see strong operating momentum and a focus on shareholder value creation that we believe leaves room for further upside in shares,” Deutsche Bank said in a note.
Wynn Macau generated $140 million in property EBITDA through February, while its sister resort on Cotai, the Wynn Palace generated $141 million.
The firm notes that Wynn Macau generated $140 million in property EBITDA through February, while Wynn Palace generated EBITDA of $141 million. The aggregate results equate to property EBITDA, on a per-day basis, of $4.76 million.
Deutsche Bank says that run rate is expected to slow in March, however, it still sees the operator meeting its target for Q1.
Wynn agreed last week to pay $2.4 billion to settle a long-running legal dispute with Universal Entertainment related to a share stake that the Japanese company held in Wynn.
Asia Gaming Brief is a news and intelligence service providing up to date market information for worldwide executives on relevant gaming issues in Asia.
ASIA GAMING BRIEF
PO Box 1139, Macau SAR
Tel: +853 2871 7267
Fax: +853 2871 7264