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Research Alert: CFRA Keeps Strong Buy Opinion On Shares Of Wynn Resorts, Limited

05/10/2021 20:16

12:15 AM EDT, 05/11/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target price to $142 on '22 EV/EBITDA of 15.6x, a notable premium vs. peers. We widen our '21 loss per share estimate by $1.68 to $4.66 and raise '22 EPS by $0.44 to $1.98. WYNN noted further sequential improvement in the underlying trends in its casino properties in Macau and, more recently, in Las Vegas and Boston, amid further reopening and easing capacity restrictions on the vaccine rollout. Also, WYNN set a spin-off of its online gaming business (Wynn Interactive) via a special purpose acquisition company (SPAC) merger with Austerlitz. With approvals, the deal is seen closing by the end of '21, upon which WYNN shareholders would own 58% of the combined entity, potentially unlocking some value. Q1 adjusted loss per share of $2.41 vs. $3.54 loss was $0.38 wider than consensus loss. Total revenue fell 24% (declines of 53% and 39% at Las Vegas operations and Encore Boston Harbor as well as 22% and 9% at Wynn Macau and Wynn Palace). Adjusted property EBITDA was $58.9M vs. $5.3M loss.