JP Morgan analyst Joseph Greff thinks that Wynn Resorts (WYNN) may not be able to keep up with the overall growth rate in Macau, and he lowered his price target and earnings expectations for the company.
Greff kept his Overweight rating on the company, but he lowered his 2012 EBITDA forecast by 6.6% to 1.297 billion and lowered his price target to $150 from $170.
“If we believe that the Macau gaming market can grow 15% to 20%, we find it tough for WYNN to match the market�s growth rate given (1) WYNN�s same-store constraints (i.e., no additional gaming capacity, at least not in any meaningful way) and tough comparisons (WYNN Macau has executed almost flawlessly in the first half of 2011) and (2) in light of a new property opening (Sands Cotai Central), which should drive a meaningful percentage of this market-wide growth.”
Wynn shares slid 0.8% to $112.76 in afternoon trading.
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