Goldman Downgrades Wynn Resorts On Challenges At Its Macau Unit

Goldman Downgrades Wynn Resorts On Challenges At Its Macau Unit

Goldman Sachs downgraded Wynn Resorts to Hold from Buy on September 6 and lowered the price target to $95 (8.3% upside potential) from $96. Goldman also removed the stock from its Conviction List, citing slower recovery at the company’s Macau unit.

Goldman analyst Stephen Grambling has lowered his 2021 forecasts for the Macau unit as he expects softer VIP gaming revenues in 2021. The recent run-up in Wynn Resorts shares in August also led to the downgrade.

Wynn Resorts Limited’s (WYNN) dependency on Macau’s gaming market is seen as a challenge. Last month, the casino operator reported 2Q results, wherein the gross gambling revenue across Macau was down nearly 95% year-over-year in July, which was the fourth straight month with revenue declining over 90%.



Wynn Resorts reported a loss of $6.14 per share, missing the Street estimates of $4.98. Its revenues of $85.7 million were also far below the consensus estimate of $275.8 million. The disappointing numbers were the result of casino closures amid the pandemic and depressed business and leisure travel. (See WYNN stock analysis on TipRanks).

Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 9 Buys and 4 Holds. The average price target of $92.67 implies upside potential of 5.6% to current levels. Shares are down by 36.8% year-to-date.

Related News:Uber, CarTrawler Team Up For New UK Car Rental ServiceVerizon Boosts Shareholders’ Return With Dividend HikeCooper Companies Gains Over 5% On Strong 3Q Results

The post Goldman Downgrades Wynn Resorts On Challenges At Its Macau Unit appeared first on TipRanks Financial Blog.

S&P 500 
$3,319.47  $37.54 
NASDAQ 100 
$10,936.98  $143.97 
Dow Jones Industrial Average 
$27,657.42  $244.56 
Apple Inc. 
$106.84  $3.50 
Alphabet Inc. 
$1,459.99  $35.54 
MICROSOFT CORP 
168,98 €  3,42 € 
Tesla, Inc. 
$442.15  $18.72 
Berkshire Hathaway Inc. 
$327,601.00  $1.00 
AbbVie Inc. 
$90.11  $0.4800 
Costco Wholesale Corporation 
$335.96  $2.92 
Smartsheet Inc. 
$45.70  $1.31 
Zai Lab Limited 
$79.27  $1.56 
Western Digital Corporation 
$37.21  $1.07 
NVIDIA Corporation 
$487.57  $10.97 
Gold Dec 20 
$1,957.10  $7.20 
Crude Oil Oct 20 
$41.15  $0.0700 
BTC/USD 
$11,084.24  $10.11 
Bitcoin Cash USD 
$233.10  $0.4300 
LTC/USD 
$48.55  $0.1300 
ETH/USD 
$384.85  $0.7000 
Dogecoin USD 
$0.0028  $0.0000