Nomura Securities Cuts Price Target on Wynn Resorts Ltd (WYNN) to $77

November 3, 2016 9:14 AM EDT
Get Alerts WYNN Hot Sheet
Price: $98.64 -0.63%

Rating Summary:
    17 Buy, 16 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 11 | Down: 31 | New: 42
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Nomura Securities maintained a Reduce rating on Wynn Resorts Ltd (NASDAQ: WYNN), and cut the price target to $77.00 (from $83.00), following the company's 3Q earnings report. 3Q Macau EBITDA of $177m was well below expectations of ~$200m. Palace’s revenues were in line but a 15.5% margin was well below the typical WYNN opening. Also, Nomura views WYNN’s lack of mass marketing prior to opening as a mistake given fierce competitive dynamics in the market.

Analyst Harry Curtis commented, "WYNN’s 3Q earnings call was a disappointment. The ramp at Palace and cannibalization at WYNN Macau may be challenged for six (and probably 18) months. WYNN’s 2017 EBITDA ests should fall by ~15%-20% as the timing to reach even the low-end of the company’s 4/2016 Investor Day guidance could be 2+ yrs out. Our Reduce rating is appropriate in our view until a path to 10% ROIC at Palace is clearer. We continue to focus on Macau given its majority share of WYNN’s EBITDA."

For an analyst ratings summary and ratings history on Wynn Resorts click here. For more ratings news on Wynn Resorts click here.

Shares of Wynn Resorts closed at $96.52 yesterday.



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