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Wynn Resorts, Ltd (WYNN) is a developer and operator of high-end hotels, resorts, casinos and gaming. Headquartered in Las Vegas, Nevada, it has won more Forbes Travel Guide Five-Star Awards than any other independent hotel company worldwide. WYNN is valued at $8.55 billion by market cap.
WYNN's shares have significantly underperformed the broader market over the past 52 weeks. WYNN has declined by 19.5% over this time frame, while the broader S&P 500 Index ($SPX) rallied 26.1%. In 2024 alone, the stock is down 16.3%, while SPX has gained 16.5% on a YTD basis.
Narrowing the focus, Wynn Resorts has also underperformed the VanEck Gaming ETF’s (BJK) 6% decline over the past year and 4.5% fall YTD.
On Aug. 6, WYNN reported its Q2 earnings of $111.9 million or an adjusted $1.12 per share, missing the Wall Street expectations of $1.23 per share. However, the stock gained 3.7% on the day. The casino operator’s revenue of $1.73 billion also fell short of the analyst expectation of $1.75 billion.
For the current fiscal year, ending in December, analysts expect WYNN’S EPS to increase 36.3% to $5.59. The company’s earnings surprise history is mixed. It surpassed the consensus estimate in three out of the last four quarters and missed on another occasion.
Among the 14 analysts covering WYNN stock, the consensus rating is a “Strong Buy,” with 11 “Strong Buys” and three “Holds.”
This configuration is slightly more bullish than three months ago, with nine analysts recommending a “Strong Buy.”
On Aug. 7, Bank of America Securities analyst Shaun Kelley reiterated a “Hold” rating on Wynn Resorts and set a price target of $100.00, which indicates an upside potential of 31.1%.
The mean price target of $113.14 represents a 48.3% premium to WYNN’s current price levels. The Street-high price target of $138 suggests an ambitious upside potential of 80.9%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
