Jefferies upgrades Wynn Resorts, says casino giant can rally more than 30%

Jefferies thinks Wynn Resorts is well positioned to go higher thanks to its stable core business and development pipeline. Analyst David Katz upgraded the casino and resorts stock to buy from hold. He also increased his price target to $118 from $105, implying 33% upside potential from Friday's close. Shares ticked slightly higher after the rating change. According to Katz, Wynn Al Marjan Island — which is being built in the United Arab Emirates — is one of the upcoming positive catalysts for the stock. The development is slated to become the first casino within the UAE. WYNN 5D mountain WYNN 5-day chart "Street confidence in Al Marjan Island is growing," the analyst wrote in a note on Monday. "The key issue surrounding Al Marjan Island is the opening and actualization of the property. However, given Wynn received a casino license for the property and construction is progressing on schedule, concerns are falling." In addition, Wynn Resorts is expected to see another tailwind from a recovering Macao market. The company is well-exposed to a stable VIP and premium consumer base in Macao, which helped power a 23% year-over-year growth in EBITDAR last year, per Katz. "We expect stability in 2025 on macro and market," Katz said. The upgrade comes after Wynn Resort shares soared 10.4% on fourth-quarter results that came above consensus estimates. The company posted stronger-than-expected net revenue in Macao and Las Vegas. To be sure, the stock still remains lower by 15.5% over the last 12 months. Most analysts are bullish on Wynn Resorts. According to LSEG, 16 of the 19 who cover the casino and resort operator have a buy or strong buy rating. The average analyst price target also signals more than 26% upside ahead.