Brean Murray Carret Raises Price Target on Wynn Resorts (WYNN) Due to Higher Hold % in Macau and Margins in Vegas
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Price: $101.42 -1.08%
Rating Summary:
35 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 20
Rating Summary:
35 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 20
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Brean Murray Carret & Co. is reiterating its Buy rating on shares of Wynn Resorts (NASDAQ: WYNN) following its Q2 results and is raising its price target from $175 to $200.
The company released its Q2 results with with EPS of $0.97, which accounts for $108 million charitable contribution to the University of Macau. Excluding the contribution EPS would have been $1.83, well ahead of the firms estimate of $1.02 and the Street's of $0.95. Revenues for the quarter rose 37 percent to $977 million.
Table revenue at Macau was up 53 percent in the quarter due to total mass volume being up 26 percent. As a result the company had to increase its hold expectations from 21-23 percent to 26-28 percent.
In Las Vegas EBITDA increased 104 percent to $133 million while RevPAR increased 18 percent to $214 million. The company's table revenue was up 10 percent year-over-year. The firm is pleased to see signs of increased traffic and demand in Las Vegas.
To go inline with market trends like higher margins in Las Vegas and a higher hold percentage in Macau, Brean Murray Carret is raising its 2011 EBITDA and EPS estimates by $167 million and $0.59 to $1.625 billion and $5.03. The firm is also raising its 2012 estimates by $173 million and $1.23 to $1.832 billion and $6.79.
For more ratings news on Wynn Resorts click here and for the rating history of Wynn Resorts click here.
Shares of Wynn Resorts closed at $164.89 yesterday.
The company released its Q2 results with with EPS of $0.97, which accounts for $108 million charitable contribution to the University of Macau. Excluding the contribution EPS would have been $1.83, well ahead of the firms estimate of $1.02 and the Street's of $0.95. Revenues for the quarter rose 37 percent to $977 million.
Table revenue at Macau was up 53 percent in the quarter due to total mass volume being up 26 percent. As a result the company had to increase its hold expectations from 21-23 percent to 26-28 percent.
In Las Vegas EBITDA increased 104 percent to $133 million while RevPAR increased 18 percent to $214 million. The company's table revenue was up 10 percent year-over-year. The firm is pleased to see signs of increased traffic and demand in Las Vegas.
To go inline with market trends like higher margins in Las Vegas and a higher hold percentage in Macau, Brean Murray Carret is raising its 2011 EBITDA and EPS estimates by $167 million and $0.59 to $1.625 billion and $5.03. The firm is also raising its 2012 estimates by $173 million and $1.23 to $1.832 billion and $6.79.
For more ratings news on Wynn Resorts click here and for the rating history of Wynn Resorts click here.
Shares of Wynn Resorts closed at $164.89 yesterday.
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