Wynn Resorts (WYNN) PT Lowered to $110 at JPMorgan

JPMorgan analyst Joseph Greff lowered the price target on Wynn Resorts (NASDAQ: WYNN) to $110.00 (from $122.00) while maintaining a Overweight rating.

The analyst comments "For the 2Q24, we are lowering our Macau property level EBITDAR estimate to $300m, down from our prior $313m, on lower margins, though our GGR forecast goes up modestly and now assumes 13%-ish share of market-wide GGR of 56.4b MOP. We bump our 2Q24 LV Strip EBITDA estimate to $221m, up from our prior $215m estimate, factoring in relatively solid fundamentals in LV, particularly at the high-end. We maintain our Overweight rating and see an undemanding valuation (8.4x 2024E EV/EBITDA) that takes into account a ho-hum 2Q24 in Macau and macro risks, both domestically (consumer) and in China (geopolitical). Versus a quarter ago, we don’t view near-term buy-side expectations as particularly bullish (we’d characterize as negative to apathetic, driven by WYNN’s likely q/q Macau market share decline). We also see an underappreciated development growth pipeline in Wynn Al Marjan, which is not priced into the shares at current levels. Our Dec 2024 price target goes to $110, down from $122, and is based on sum-of-the parts approach on 2025E EV/EBITDAR, where we ascribe target multiples of 9.0x to Macau (down from 10.0x, previously and drives the vast majority of our price target reduction), 10.0x on Las Vegas, and 7.0x on EBH. Not aggressive, in our view."

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