UPDATE: Sterne Agee Raising Price Target On Wynn Resorts Ltd. (WYNN)

Sterne Agee is raising its price target on shares of Wynn Resorts Ltd. WYNN to $133 from $123, but it still has a Neutral rating on shares after the casino company reported earnings last night. In a note to clients, Sterne Agee writes, "We believe WYNN will lose some share in Macau post the opening of Galaxy Macau, followed by a bit more after LVS' (Buy, $45.20) Sites 5 & 6 open – both new gaming offerings slated for the Cotai side of the Island. While we believe WYNN can offset some of the potential share decline with its best in breed/unique property versus its likewise Peninsula situated brethren, we continue to see a visitation weighting shift to Cotai over the next 24 months. We also believe WYNN's timeline for a late CY14 or CY15 opening of its own property in Cotai is too aggressive – this Cotai timeline was not reiterated on its earnings call. We struggle to see how labor becomes available for the project anytime soon without a move by the Macau Government for a large increase of foreign labor, a politically sensitive issue in Macau (recall that other operators are also looking for a land grant/to build on Cotai). While we remain bullish on Macau as a market, we do not believe Wynn Macau is in the best of geographic locations given upcoming new supply, and it has no Macau pipeline for at least multiple years, in our view." Shares of WYNN are up $9.75 to $148.68, a gain of 7% on nearly 3 million shares.