Wells Fargo upgrades Wynn Resorts to Overweight, raises price target to $101

As previously reported, Wells Fargo analyst Daniel Politzer upgraded Wynn Resorts to Overweight from Equal Weight with a price target of $101, up from $74. The analyst argues that Wynn has a viable path to recapturing most/all of its 2019 VIP EBITDA, despite the absence of junkets, through direct VIP/premium mass play, which he believes is not reflected in the stock. Politzer also notes that Wynn is highly levered to Macau’s GGR recovery, now more palpable post China’s policy pivot, and representing the best growth opportunity in Gaming. Further, he cites Wynn’s smaller scale and premium mass offering that should allow for a speedy recovery, reasonable reopening expectations, and undemanding valuation. The analyst includes Wynn on his firm’s Tactical Ideas list for Q1 2023, as he believes company-specific catalysts should drive stock outperformance during the quarter