Credit Suisse Starts Wynn Resorts (WYNN) at Neutral

Credit Suisse analyst Ben Combes initiates coverage on Wynn Resorts (NASDAQ: WYNN) with a Neutral rating and a price target of $72.00.

The analyst comments "We are Neutral on WYNN due to increased competitive supply in Cotai, and an unclear road to recovery in Las Vegas. WYNN will likely perform strongly in the near term given its exposure to VIP Macau, and our more bullish view on that segment of the market. However, increased supply in Cotai, including a $5bn property opening next door to Wynn Palace (run by the Ho family) adds risk to the story. Given increased competition and risk that HK political disruption returns (which impacted VIP more in the past), we see multiple expansion harder to come by. We expect a slower recovery in Las Vegas, given (1) fly-to guests who we think may be slower to take long-haul flights, (2) new supply growth to Las Vegas, an area which for almost the last decade has experienced limited new capacity, and (3) leverage to corporate meetings/events, which we think will operate on a lag due to both sales/planning and corporate earnings deceleration."

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 $86.63 yesterday.

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