• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

DB bullish on Wynn Resorts for Wynn Palace

Aug 16, 2017 Newsdesk Latest News, Macau, Top of the deck, World  


DB bullish on Wynn Resorts for Wynn Palace

The stock of U.S.-based casino operator Wynn Resorts Ltd has been upgraded to ‘buy’ from ‘hold’ by brokerage Deutsche Bank Securities Inc in a Tuesday note.

Its analysts said factors affecting the recommendation included the institution’s recent upgrades in the forecast for Macau-wide growth in casino gross gaming revenue (GGR) in the third-quarter and full-year 2017; the ramp up of business at the Wynn Palace casino resort (pictured) in Cotai following its August 2016 launch; and the likely improvement in mass-market gambling earnings from the property.

Wynn Palace and its older sister venue Wynn Macau on Macau peninsula, are promoted by Macau casino operator Wynn Macau Ltd, with around 72 percent of the latter’s earnings before interest, taxation, depreciation and amortisation (EBITDA) attributable to the parent firm according to Deutsche Bank.

“Our updated Wynn Resorts model reflects the implications from our market forecast revisions in Wynn Macau results, as well as our perception of improved mass gaming trends at Wynn Palace,” wrote the institution’s analysts Carlo Santarelli and Danny Valoy.

Earlier in August, the brokerage had raised its Macau market-wide GGR growth forecasts to 24.4 percent year-on-year for the third quarter – from 15.9 percent previously – and to 18.9 percent for full-year 2017 – from 14.7 percent previously.

“We have upped our [Wynn Resorts] forecasts on stronger than previously-modelled mass volumes at [Wynn] Palace and modestly stronger VIP performance on the peninsula,” said Mr Santarelli and Mr Valoy.

“In Macau, our aggregate [Wynn Macau Ltd] third-quarter property EBITDA forecast is up approximately US$10 million from our prior forecast and is approximately US$18 million above [research firm] Consensus Metrix,” noted the analysts.

“We expect news flow from Macau to remain relatively quiet ahead of the NPC [sic] and believe upward revisions are likely,” they added, referring to the 19th National Congress of the Communist Party of China – an event which is due to take place this autumn in Beijing. Political commentators expect that the retirement will be announced during the event of a number of current members of the Politburo Standing Committee – the core leadership of China’s government.

“At approximately 12x 2018 [Wynn Resorts’] EBITDA, we feel the R-R [risk ratio] is attractive and we have upped our price target to US$150 from US$138,” said Deutsche Bank Securities, referring to its ‘buy’ call. It clarified the 2018 EBITDA estimate – equal to US$918.4 million net of corporate expenses – related to Wynn Las Vegas, Wynn Boston Harbor – a new U.S. project formerly known as Wynn Everett – and royalty fees associated with Wynn Macau Ltd.

Mr Santarelli and Mr Valoy stated: “While this is not a buy the dip call, [Wynn Resorts] shares have pulled back 8 percent on second-quarter earnings and broader equity market concerns, just as we believe an inflection is taking place on the mass floor at Wynn Palace.”

The analysts added: “Our checks give us confidence that the reconfiguration of the [Wynn Palace] mass floor has stimulated improved mass play. Accordingly, we think third-quarter consensus forecasts are beatable and we believe out-period upward revisions will drive shares higher. In addition to the upward revisions, we believe; 1) continued VIP strength will drive positive Macau market GGR revisions, 2) stocks will follow Macau market GGR, and 3) accelerating discretionary free cash flow will garner incremental investor attention.”


  • tweet
Related articles
  • Ian Coughlan out of Wynn Macau Ltd board, Cameron-Doe in
    Ian Coughlan out of Wynn Macau Ltd...

    May 29, 2023  

  • S&P lifts Macau 2023 mass GGR forecast to 75pct of 2019
    S&P lifts Macau 2023 mass...

    May 16, 2023  

More news
  • Lam Yi Young resigns as deputy CEO Resorts World Sentosa
    Lam Yi Young resigns as deputy CEO...

    Jun 02, 2023  

  • China stimulus package could benefit Macau stocks: CBRE
    China stimulus package could benefit...

    Jun 02, 2023  


Latest News

Lam Yi Young resigns as deputy CEO Resorts World Sentosa

Lam Yi Young resigns as deputy CEO Resorts World Sentosa

Jun 02, 2023  

Genting Singapore Ltd says Lam Yi Young has resigned from his role as deputy chief executive of Resorts World at Sentosa Pte Ltd. The latter firm is an indirect wholly owned subsidiary of Genting...
Read More
China stimulus package could benefit Macau stocks: CBRE

China stimulus package could benefit Macau stocks: CBRE

Jun 02, 2023  

G2E Asia 2023: Singapore

  • Alfastreet’s new Verso cabinet heading to Asian markets
    Alfastreet’s new Verso cabinet heading to Asian markets

    Jun 01, 2023  

    Alfastreet, a manufacturer of electronic gaming machines,...
  • Sega Sammy Creation growing land-based, eyes online
    Sega Sammy Creation growing land-based, eyes online

    Jun 01, 2023  

    Casino equipment maker Sega Sammy Creation Inc is tweaking...
  • iGaming growing in Asia, ops tackling challenges: Uplatform
    iGaming growing in Asia, ops tackling challenges: Uplatform

    Jun 01, 2023  

    The iGaming segment in Asia “has grown rapidly” since...
  • ‘See before you play’ slot marketing tool, say tech suppliers
    ‘See before you play’ slot marketing tool, say tech...

    May 31, 2023  

    Showing slot machine players – via animations on the...
  • Macau stocks tied to China outlook: Bloomberg analyst
    Macau stocks tied to China outlook: Bloomberg analyst

    May 31, 2023  

    Macau stocks in likelihood “have been punished too much...
  • Investors still eye possible fresh IR locations in Japan: scholar
    Investors still eye possible fresh IR locations in Japan:...

    May 31, 2023  

    There are foreign companies still interested in investing...
  • Thai casino law possible in 2024, IR in 2030: govt adviser
    Thai casino law possible in 2024, IR in 2030: govt adviser

    May 31, 2023  

    Thailand could pass the necessary enabling legislation for...
  • China still ‘critical’ to Asian markets: G2E Asia panel
    China still ‘critical’ to Asian markets: G2E Asia panel

    May 30, 2023  

    China will remain a key market for Asian gaming...
  • Much interest in state casinos sale, says Pagcor boss Tengco
    Much interest in state casinos sale, says Pagcor boss

    May 30, 2023  

    Alejandro Tengco (pictured in a file photo), chairman and...
  • Gaming industry in for a very exciting period: Bill Miller
    Gaming industry in for a very exciting period: Bill Miller

    May 30, 2023  

    There are “plenty of reasons” for the global gaming...
  • IGT flags route to high-performing games for Asia
    IGT flags route to high-performing games for Asia

    May 30, 2023  

    Gaming equipment provider International Game Technology Plc...
  • G2E Singapore trade show, conference begins today
    G2E Singapore trade show, conference begins today

    May 30, 2023  

    The Global Gaming Expo (G2E) Asia 2023 Special Edition:...
  • Novomatic’s Black Edition II cabinets at G2E in Singapore
    Novomatic’s Black Edition II cabinets at G2E in Singapore

    May 29, 2023  

    Austria-based gaming equipment maker and operator Novomatic...
  • Uplatform to show latest iGaming products at G2E Singapore
    Uplatform to show latest iGaming products at G2E Singapore

    May 25, 2023  

    Sports betting and online casino operating platform...
  • L&W ambition to be No1 in Asia well on its way: SVP gaming
    L&W ambition to be No1 in Asia well on its way: SVP...

    May 24, 2023  

    The business performance in Asia of gaming content and...
  • G2E Singapore expecting 6k visitors, 100+ exhibitors
    G2E Singapore expecting 6k visitors, 100+ exhibitors

    May 18, 2023  

    The organisers of Global Gaming Expo (G2E) Asia 2023...
  • ‘Dragon Unleashed’ slot link by L&W at G2E in Singapore
    ‘Dragon Unleashed’ slot link by L&W at G2E in...

    May 17, 2023  

    Gaming content and equipment supplier Light & Wonder...
  • Sega Sammy Creation new multi-ETG at G2E in Singapore
    Sega Sammy Creation new multi-ETG at G2E in Singapore

    May 16, 2023  

    Casino equipment maker Sega Sammy Creation Inc is to...
  • Aristocrat at G2E Asia in Singapore previews Year of Dragon
    Aristocrat at G2E Asia in Singapore previews Year of Dragon

    May 09, 2023  

    Casino slot machine and digital gaming content provider...
  • IGT ‘Prosperity’ link in Asia show debut G2E in Singapore
    IGT ‘Prosperity’ link in Asia show debut G2E in...

    May 05, 2023  

    The Global Gaming Expo (G2E) Asia event in Singapore is the...
  • Thai parliament adviser on casinos attending G2E Singapore
    Thai parliament adviser on casinos attending G2E Singapore

    May 04, 2023  

    An adviser to a Thailand parliamentary committee mulling...

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


US$8.1 billion

Macau’s casino gross gaming revenue in the five months to May 31



Most Popular

  • Lam Yi Young resigns as deputy CEO Resorts World SentosaLam Yi Young resigns as deputy CEO Resorts World Sentosa June 2, 2023
  • MBS en route to US$500mln quarterly EBITDA: LVS bossMBS en route to US$500mln quarterly EBITDA: LVS boss June 1, 2023
  • China stimulus package could benefit Macau stocks: CBREChina stimulus package could benefit Macau stocks: CBRE June 2, 2023

Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us