UBS Maintains a 'Buy' on Wynn Resorts (WYNN); Macau VIP Volumes All-time High, But Not Showing Up In EBITDA
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Price: $101.45 -1.05%
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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UBS maintains a 'Buy' on Wynn Resorts (NASDAQ: WYNN) price target raised from $151 to $165.
Analyst, Robin M. Farley, said, "While hold-adjusted Macau EBITDA was roughly in line with our expectations given higher VIP volumes vs. estimates, it did not flow thru to the EBITDA line. This $3.6B of higher rolling chip volume could have put EBITDA $15-20M higher vs. our normal hold estimates. There was $8M of higher bad debt expense in Q1, but that accounts for 3 points of ~13% op expense increase (excluding gaming tax and commissions)."
Farley believes Wynn will be breaking ground on a new property in Cotai in the next few weeks and sees a $3.5bln cost in CapEx. Also noted, was Las Vegas conventions, saying 2012 may not be a very strong year (considering 2 cancelled in Q1), but 2013 looks good.
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 $125.19 yesterday.
Analyst, Robin M. Farley, said, "While hold-adjusted Macau EBITDA was roughly in line with our expectations given higher VIP volumes vs. estimates, it did not flow thru to the EBITDA line. This $3.6B of higher rolling chip volume could have put EBITDA $15-20M higher vs. our normal hold estimates. There was $8M of higher bad debt expense in Q1, but that accounts for 3 points of ~13% op expense increase (excluding gaming tax and commissions)."
Farley believes Wynn will be breaking ground on a new property in Cotai in the next few weeks and sees a $3.5bln cost in CapEx. Also noted, was Las Vegas conventions, saying 2012 may not be a very strong year (considering 2 cancelled in Q1), but 2013 looks good.
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 $125.19 yesterday.
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