With egg prices soaring out of control and wages still largely stagnant, one might think a discretionary play like gaming stock Wynn Resorts (WYNN) might be on the bad end of all that. But Jefferies analysts disagree, and Wynn snapped up nearly 4% in Tuesday afternoon’s trading.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Jefferies analyst David Katz gave Wynn a boost, upgrading the stock from Hold to Buy, and also bumping up the price target from its previous $105 to the current $118. That, noted a CNBC report, gives Wynn a potential 33% upside against its close on Friday.
Reasons behind the change were certainly compelling. A combination of a solid core business, coupled with reasonable development, should serve as the means to make Wynn a more attractive prospect going forward. Just one such positive catalyst, Katz noted, was the upcoming Wynn Al Marjan Island, currently being built in the United Arab Emirates. That is likely to make some serious headway with wealthy players in the area.
A Growing Success
Certainly, new projects will give Wynn an edge going forward. But Wynn’s baseline product is also proving a success. For instance, Wynn recently noted that, according to the Forbes Travel Guide, it has the most five-star awards of any independent hotel operator on the face of the Earth.
Further, demand for Las Vegas in general is on the rise, which is a rising tide that will lift Wynn’s boat just as much. Group and convention room bookings for 2025 remain strong, and Las Vegas is proving a powerhouse to draw in all those conventions. One particular draw, reports note, is “sports tourism,” in which more and more visitors come to Las Vegas to see live sports as much as they do to bet on the outcome, or bet on anything else.
Is WYNN a Buy, Sell or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on WYNN stock based on nine Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 9.91% loss in its share price over the past year, the average WYNN price target of $117 per share implies 26.8% upside potential.
