Wynn stock (NASDAQ:WYNN) increased on Tuesday after Wells Fargo expressed optimism about the improving trends in Macau.
The recovery of VIP/premium mass play, the casino operator’s smaller-scale premium mass offers, and the bank’s analysts led by Daniel Politzer were all mentioned as important factors driving the upside. Given the confluence of variables expected to occur in the upcoming few months, Wynn was included on the bank’s “Tactical Ideas List for 1Q23” as a result of Macau’s return and the lifting of China’s limitations.
Wynn Stock Forecast
Politzer says, “WYNN is strongly linked to Macau’s GGR rebound, which is now more real after China changed its policy, and represents the biggest growth opportunity in gaming.” Also, the US economy is strong. There will be big events in Las Vegas in three of the next five quarters, and once sports betting is legal in Massachusetts, Boston should have more visitors, databases, and gross gaming revenue.
Politzer increased his price objective for the stock from $74 to $101, upgrading it from “Equal-Weight” to “Overweight.” The casino operator’s stock increased by 3.43% on Tuesday.
When they start using their new licenses to work in the biggest gambling hub in the world on Jan. 1, it will be very important to see if Macau’s casinos will be able to do what the government wants and move away from their main source of income, gambling.
With their casinos in the Chinese special administrative zone, Sands China, Wynn Macau, MGM China, Galaxy Entertainment, MGM China, and SJM Holdings have made billions of dollars over the past 20 years, transforming the once-quiet fishing village into a flashy boomtown.
But their 10-year contracts are shorter at a time when COVID-19 regulations have cut Macau’s gambling income by a lot. In fact, 2022 will be the worst year for gambling income on record. As the industry’s net debt keeps rising, operators are facing a new era in which the government will watch and control their businesses.
As a result of the recent loosening of coronavirus restrictions in Macau and mainland China in December, the city has been hit by a wave of infections. Many employees have also gotten sick.
Wynn Resorts Macau Signs 10-Year Gaming Concession Agreement
Featured Image: Unsplash @ Scott Webb