Labor unrest and softer gaming activity at Encore Boston Harbor have put Wynn Resorts (WYNN) under a brighter spotlight, as investors rethink what these operational issues might mean for the casino operator's earnings profile.
Recent trading reflects that reassessment. Wynn Resorts' share price has fallen 29.12% over the past 90 days and is down 41.76% year to date. The 1 year total shareholder return has declined 40.39%, suggesting momentum has weakened as operational risks at Encore Boston Harbor and prior security concerns feed into sentiment.
Position your portfolio for potential rebounds and contrasts by scanning Wynn Resorts alongside 26 high quality undervalued stocks, which may be pricing in very different risk stories to Encore Boston Harbor.After a drop of more than 40% in 1 year, Wynn Resorts now sits at a valuation that splits opinion. Is most of the recovery case already reflected, or is the bulk of the upside still in front of the stock as risks reset?
Most Popular Narrative: 44% Undervalued
Wynn Resorts last closed at $71.38, while the most followed narrative pegs fair value around $127.21. The gap between price and modeled worth is wide and rests heavily on how its premium projects deliver.
Expansion of Wynn Resorts' premium-focused footprint through the Enclave tower at Wynn Palace, which is planned to add 432 all-suite rooms and materially increase room and suite capacity in Macau, could support higher gaming and non-gaming revenue once ramped. Management estimates point to roughly US$400 million of incremental gross gaming revenue and US$150 million to US$175 million of EBITDA.
See why 26 investors see Wynn Resorts as 44% undervalued.
Result: Fair Value of $127.21 (UNDERVALUED)
Still, Wynn Resorts faces clear pressure points, with the Encore Boston Harbor strike and the higher cost, delayed UAE project both capable of undermining the bullish recovery story.
Find out about the key risks to this Wynn Resorts narrative.
Next Steps
Conflicted by the mix of pressure and optimism around Wynn Resorts today? Move quickly, review both sides of the story, and weigh the 4 key rewards and 3 important warning signs
Looking for more investment ideas beyond Wynn Resorts?
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