Hudson Securities Reiterates Hold Rating on Wynn Resorts (WYNN)

Hudson Securities is out with a research report this morning, where it reiterates its Hold rating on Wynn Resorts WYNN ahead of earnings; it has a $129.00 price target on the stock. The HS analysts noted that WYNN reports 1Q11 results after the close today. A 4:30 pm EDT conference call is scheduled. The analysts' current 1Q11 EBITDA estimate of $291 million is $15 million below the Street. The analysts added that they believe just under 75% of WYNN's property EBITDA will come from its Macau operations with the remaining coming from Las Vegas. As for valuation, the analysts said, “We value Wynn using a sum-of-the-parts methodology and our 12-18 month target price remains unchanged at $129. The core of our methodology values Wynn's Las Vegas operations at 10x EBITDA, consistent with a normalized valuation range for Las Vegas Strip assets. We also value Wynn's Macau operations at 13.0x which is based on the current valuation of the Wynn Macau on the Hong Kong Stock Exchange.”