Citi believes the investment case for Wynn Resorts is compelling. The bank upgraded the casino operator to buy from neutral and hiked its price target $160 from $124.50, implying upside of 37%. WYNN YTD mountain WYNN YTD chart Analyst James Hardiman applauded Wynn’s benefits as the “premium operator” in the casino business. He added that while the stock is already this year’s best performer of the seven stocks in his gaming universe, he continues to see the potential for continued momentum forward. “WYNN brings the most inorganic growth potential to the table, with a major project now on the horizon (UAE), the brand strength to be a strong contender for any opportunities beyond the horizon or, alternatively, the cash flow generation and balance sheet health to enter a capital return phase starting in 2027/2028,” Hardiman wrote. He singled out Wynn’s Al Marjan as “the most significant casino development that is currently within (or soon to be within) investment horizons.” The company plans to open the site in early 2027. This also coincides with the completion of other growth projects both domestic and overseas, which should free up a significant amount of capital in 2027 and beyond, to the tune of more than $1 billion. Wynn could apply this extra cash to dividend expansion, more aggressive shares repurchases or new growth projects, Hardiman added. The analyst also pointed to Wynn’s status as a hedge against declining Las Vegas traffic. “WYNN has generally stayed above the fray with respect to the considerable handwringing surrounding post-COVID performance of the Las Vegas Strip,” he wrote. “This is not to say that WYNN is immune from the myriad of factors impacting the Strip, but more so that the K-shaped nature of Strip performance has been a relative benefit to WYNN (at least so far), creating the closest thing to a safe haven in an inherently unsafe investment environment.” Shares of Wynn Resorts have popped 36% this year.
