Wynn Macau is eyeing a potential market share gain in the Chinese Territory over the next few years CBRE analyst John DeCree said in a note to clients issued on Tuesday, according to Casino.org.
In the note, DeCree says that industry analysts may be underestimating Wynn Macau’s potential to pilfer market share from rivals during the 2023 year, as analyst expectations outline 2023 revenue that’s 66% of what was seen in 2019, which was before the COVID-19 pandemic, and earnings before interest, taxes, depreciation, and amortization (EBITDA) that’s 73% of that which was seen in 2019.
Those numbers represent figures that are far below the 78% revenue and 87% EBITDA rebounds analysts are modeling.
“Historically, Wynn earns well more than its fair share in each of the markets in which it operates, including Macau” according to DeCree. “In 2019, Wynn exceeded its fair share in Macau across every metric.”
“Given the potentially smaller market, and much less VIP concentration, some operators may not utilize all their allocated table capacity” he continued. “This could lead Wynn to earn an even greater premium to its fair share if it can successfully consolidate the highest value customer segments and maximize profitability per table and room, as we suspect it will.”
DeCree rates Wynn Resorts “buy” with a price target of $130 which is up from the $115 and beyond that closing price of $98.36 that was seen on Wednesday.
