Wynn Resorts (WYNN – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Stephen Grambling from Morgan Stanley maintained a Buy rating on the stock and has a $95.00 price target.
Stephen Grambling has given his Buy rating due to a combination of factors that suggest resilience and potential growth for Wynn Resorts. Despite the initial report showing lower-than-expected results due to a weaker VIP hold in Macau, when adjusted for these factors, the company’s EBITDA actually surpassed expectations. This indicates a strong underlying performance, particularly with robust group bookings in Las Vegas and positive trends during the April/May Golden Week.
Additionally, Wynn Resorts’ strategic capital allocation, including stock buybacks and delayed capital expenditures, positions the company well in a challenging economic environment. The stock is trading at a favorable valuation compared to historical averages, and the upcoming opening in the UAE presents further growth opportunities. These elements, combined with a resilient business model, underpin Grambling’s optimistic outlook and Buy rating.
According to TipRanks, Grambling is a 4-star analyst with an average return of 4.5% and a 57.31% success rate. Grambling covers the Consumer Cyclical sector, focusing on stocks such as Marriott International, Hyatt Hotels, and DraftKings.
In another report released today, Barclays also maintained a Buy rating on the stock with a $101.00 price target.