Wynn Resorts (WYNN) shares are soaring on Friday after Morgan Stanley analyst Stephen W Grambling upgraded the company to Overweight from Equal-Weight. Grambling also raised the price target to $104 from $97, signaling strong confidence in the company’s future prospects.
Grambling believes Wynn Las Vegas is primed for success, particularly benefiting from a shift towards higher-end clientele. The company’s recent investments in new attractions and its commitment to reinvestment put it ahead of its competitors. Grambling emphasizes that Wynn’s strategic investments, prime location near new attractions, and luxury branding will lead to stronger fundamentals than the market currently anticipates.
Beyond its Las Vegas operations, Grambling sees significant value in Wynn’s UAE project, which is nearing completion this year. He argues that the company’s venture into the UAE, a market with limited supply and favorable demographics similar to Singapore, has the potential for substantial returns.
Furthermore, Grambling expects potential for increased dividends, particularly with Wynn Macau’s payout expected to rise. Adding to the positive outlook, the analyst points to the anticipated decision on New York’s casino licenses in the second half of 2025. If Wynn wins this bid, it would gain access to the largest US metro market with high discretionary income for gambling, creating a significant growth catalyst.
To reflect the positive impact of recent stimulus measures in China and stronger-than-expected demand in Macau, Grambling raised 2025/26 EBITDA estimates by approximately 3% and 2.5%, respectively.
Investors interested in gaining exposure to Wynn Resorts can explore options like the Capitol Series Trust The Nightview Fund NITE, NITE, and VanEck Gaming ETF BJK. As of the last check on Friday, WYNN shares were up 6.5% at $97.01.
