Deutsche Bank Outlines Positive Perspectives for Wynn Resorts Operations and Shares
Carlo Santarelli, the Deutsche Bank analyst, has made an upbeat prediction for Wynn Resorts’ operations and shares. A bull case, expected despite the uncertainty about the future of casino resorts, has been outlined in a new note to the company’s investors.
Santarelli’s outlook is based on several main factors that are going to be the drivers for the company’s stock over the next months. The analyst expects that the return of travelers in Macau will improve Wynn’s overseas operations. Meanwhile, the Las Vegas Strip sees a growth of visitors. Besides, the company is working on the newly-planned venue at the Hudson Yards in New York City with a real estate developer, Related Cos, and expects a 15% return on investment if the project is finally approved.
What’s even more important, the company is already building its Al-Marjan Island in UAE, the very first casino resort in the country. Fantastic dividends are expected in the long run. Despite the fact that Wynn’s investors have some hesitations about the share value of the company at the background of Al-Marjan Island’s construction being underway, Santarelli thinks that it will be driving strong returns for the company and the stock is presently underappreciated and is expected to pick up in the near future.
There are nearly 10 million people living in the United Arab Emirates. About 90% of natives are expatriates, so they can gamble. However, the Al-Marjan project is also targeted at tourism as it will be a global destination in the Middle East.
The last, but not the least, asset of the company is WynnBET, its interactive division. Despite its relatively slow development, Santarelli sees it as a “meaningful driver of value”. One of the reasons for such an opinion is that WynnBET has been doing better in cutting the losses than the competitors.
In other news, Rivers Casino has hosted a hiring event in New York.