Stifel trims Wynn price target, says Macau valuation ‘somewhat ridiculous’

Stifel lowered the firm’s price target on Wynn Resorts to $103 from $121 and keeps a Buy rating on the shares. Shares are down about 17% year-to-date and continue to get pressured due to the company’s heavy exposure to the controversial Macau gaming market, notes the analyst. While the firm “fully understand the current lack of investor appetite to own Macau-centric (or even China related) stocks,” Stifel believes current trading levels are “essentially pricing in almost zero value” for the Macau assets as well as their UAE project, which it calls “way too pessimistic/Draconian” and “somewhat ridiculous under any scenario.” Even after lowering its estimates, the firm views current trading levels as “extremely attractive” and would be using recent weakness to accumulate shares, the analyst tells investors.