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; it has a $146.00 price target on the stock, up from $129.00. The HS analysts cited the company's recent earnings results, which beat expectations. High hold in Las Vegas played a factor, but results were still strong. In Las Vegas, WYNN has invested capital in the property over the last year with rooms remodeling, baccarat pit renovation, and new nightclub offerings that are paying dividends especially at time when many of its competitors are capital constrained. As for valuation, the analysts remarked, “We value Wynn using a sum-of-the-parts (SOTP) methodology and our 12-18 month target price goes to $146 from $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.”