Wynn Resorts could see a big windfall in the near future, according to Bank of America. The bank upgraded shares of the casino operator to a buy rating from neutral. Analyst Shaun Kelley accompanied the move by raising his price objective to $100 from $90, which implies upside of nearly 20%. Kelley highlighted the opening of Wynn Al Marjan Island, located in the United Arab Emirates, in early 2027 as a key catalyst. This would be the Middle East’s first major integrated casino resort, giving Wynn a first-mover advantage. Wynn Resorts is currently nearing the halfway point of its construction on the $5 billion casino development. He said investors will price this into the stock in the next 12 to 18 months. “We think the density and growth of wealth relocating to the region amid a friendly tax and business climate, plus well-established tourism infrastructure are major tailwinds,” Kelley wrote. “While investors will need to be patient given macro uncertainty and it still being ~2 years until the UAE opens, Wynn’s recent pullback (-20% since Oct), 10% free cash flow yield and core asset valuation increasingly de-risk China/Macau exposure (our big concern). Ultimately, the UAE should drive a return to both growth and diversification away from Macau, that we believe will help re-assert Wynn’s once premium valuation.” The analyst also pointed to stable trends and market share in Wynn’s Macao segment. Meanwhile, the company’s Las Vegas assets remain best-in-class and are still gaining market share. Wynn Resorts climbed more than 3% on the back of Bank of America’s upgrade. Most analysts covering Wynn are bullish on shares. LSEG data shows that 15 of 18 analyst have a buy or strong buy rating on the stock. The average price target also implies upside of 28%.
