This 'Game Changer' Makes Wynn Citi's Top Casino Stock

Analysts at Citi recently took an in-depth look at the gaming industry and released reports in the top names in the business.

Analysts are bullish on casino stocks overall, but they chose Wynn Resorts, Limited WYNN as their top pick in the U.S. gaming industry.

Lowering Macau Forecasts

In their report on Wynn, analysts included a lowered 2015 outlook for Macau gaming due to the "harsh realities" of the current VIP environment. Citi is now forecasting a 16 percent drop in gross gaming revenue (GGR) in Macau in 2015, down from its previous estimates of only a four percent drop.

Related Link: Macau Revenue Drop In February Not As Bad As Expected

Weakness in Macau is the driving force behind Citi lowering its price target for Wynn from $203 to $195.

Wynn Palace

Analysts are expecting that Wynn Palace, the company's $4.1 billion floral-themed Macau mega-resort currently under construction, will likely be approved for about 250 additional tables by the Chinese government. "In our view, Wynn Palace, when opened in 2016, will likely offer some of the most luxurious rooms in the global gaming industry," analysts said in the report.

Citi analysts are predicting Wynn will move about 150 tables from Wynn Macau to the new Wynn Palace, suggesting that Wynn Palace will open with about 400 tables.

If Citi's forecast of 250 additional tables comes true, that will mean an overall Macau table increase of more than 50 percent for Wynn.

Stock Outlook

Analysts see Wynn Palace as "a game changer" that makes Wynn their "top U.S. gaming play."

Despite lowering its target price to $195, Citi maintains a Buy rating on Wynn stock.

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