Shares of Wynn Resorts (NASDAQ: WYNN) have surged 32.23% year-to-date, which is one of the best performances among gaming equities. A sell-side analyst believes there is still more upside for the operator.
In a recent report to clients, Deutsche Bank analyst Carlo Santarelli expressed confidence in the stock by reiterating a “buy” rating and raising his price target to $134, indicating a potential upside of nearly 23% from the current close at $109.05.
The analyst believes investors may be underestimating the potential benefits of Wynn’s casino resort project on Al-Marjan Island in the United Arab Emirates, which broke ground last week. He estimates it could be worth $10-$14 per share in present value and is not currently priced into the stock.
In addition, Santarelli believes the operator is on track to post 2023 revenues and EBITDA that is 66% and 73% of pre-pandemic 2019 levels, respectively. Moreover, Wynn has been gaining market share from its Macau rivals, creating further upside potential. He concluded that exposure to the growth and favorable revision potential of Macau is a prudent decision for investors.