Goldman Sachs Upgrades Wynn Resorts (WYNN) to Buy, Sees 33% Upside

Goldman Sachs upgraded Wynn Resorts (NASDAQ: WYNN) from Neutral to Buy with a price target of $136, suggesting 33% upside. The firm said the bad news is reflected in the stock, but the good news is not.

"We believe the stock price reflects most of the risks currently associated with the company, but does not reflect the potential upside to this premier US/Asian casino story," the analyst said.

The firm said as some of the fear begins to dissipate and same-store, market and unit growth potential is once again appreciated, shares will regain its historic premium valuation relative to peers.

Following a visit to Macau, the firm believes that growth fears are overblown. Trends appear to be strong with limited discounting, with long-term structural demand drivers in place. On the Okada litigation, the firm said external research gives them comfort that the 30% discount on the Okada stake may be supported. In addition, as Wynn provides more details on the Cotai project, investors should get a better sense of the EBITDA generation. With capex/financing in place, investor comfort about a $4-$8/share special dividend should increase.

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 $104.61 yesterday.

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