Jefferies Has Buy On Wynn Resorts (WYNN)

Jefferies & Co. has a Buy rating and a $130 price target on shares of Wynn Resorts, Limited WYNN. In a note to investors, Jefferies writes, "Wynn Resorts (WYNN, $127.03, Buy) announced a strategic alliance with PokerStars, which is the world's largest online poker business. The relationship was formed with two primary purposes: (1) to collaborate in efforts to achieve federal legislation that will regulate and protect against illegal internet gambling through the safe operation of online poker by experienced operators; and (2) to create a jointly operated United States online poker website (www.PokerStarsWynn.com) once appropriate legislation has been passed and the requisite license has been obtained. PokerStars is privately held, has more than 40 million online members and operates worldwide, including most recently in France, Italy, Estonia and Belgium. PokerStars has been endorsing the legalization of online poker in the U.S. Although economic terms of the deal aare not disclosed and most likely undetermonable, we view the partnership positively for WYNN shares as it represents a key strategic positioning for the company if and when internet gaming is legalized in some form, and should ultimately make WYNN a meaningful competitor against other gaming brands that have established similar capabilities, including Caesars Entertainment. Given the precedent set recently by the approval of Caesar Entertainment's relationship with 888 Holdings, we expect that WYNN and PokerStars should be able to acquire the necessary regulatory approval of their new relationship from the Nevada Gaming Commission." Shares of WYNNgained $2.79 on Friday to close at $127.03, a gain of 2.25%.