Deutsche Bank Maintains Buy Rating Amid Price Target Adjustment
Leading gaming analyst Carlo Santarelli of Deutsche Bank reaffirmed his Buy rating for Wynn Resorts (NASDAQ: WYNN) today, though he lowered his 12-month price target from 129to129to110 per share. This revised target still represents a potential 45% upside from the current trading price of $75.83.
Las Vegas Operations Outperform Expectations
Santarelli’s report highlighted Wynn’s strong Q1 2025 performance in Las Vegas, where properties exceeded revenue projections. The analyst downplayed concerns about declining international visitation, noting: “Our data suggests the high-roller segment remains resilient despite geopolitical tensions.” He projects just a 1.5% business decline in Las Vegas through 2026.
Macau Performance Raises Concerns
Las Vegas remains a top destination for both leisure and business travel. MGM Resorts saw a 3% rise in room rates, while Caesars Entertainment led with a 6% increase, driven by strong weekday demand from conventions and events. Although weekend rates dropped 7% after the 2024 Super Bowl boost, market fundamentals remain strong — making Las Vegas hospitality an attractive sector for investors in 2025.
Wynn’s UAE Resort Seen as Major Growth Catalyst
Analyst Santarelli highlighted the significant untapped value of Wynn’s $3.9 billion integrated resort development in the UAE. He estimates the project adds roughly $16 per share in unaccounted value for the company.
“The market isn’t pricing in this growth catalyst,” Santarelli noted, pointing to the resort’s expected 2027 opening as a key driver for future earnings and expansion.
New York Expansion Adds Growth Potential
The positive analysis comes as Wynn advances its Hudson Yards casino proposal in Manhattan, which recently cleared a key zoning hurdle. This potential expansion could further diversify Wynn’s revenue streams beyond its traditional Asian and Vegas markets.
Market Reaction and Investment Outlook
Following the report’s release, Wynn shares gained 2.3% in midday trading, though they remain down nearly 15% year-to-date. Santarelli concluded: “While Macau presents near-term challenges, Wynn’s diversified portfolio and development pipeline make it an attractive long-term play in the gaming sector.”
Analysts will be closely watching Wynn’s Q2 earnings report for signs of improvement in Macau and updates on both the UAE and New York development projects. The company’s ability to execute on these growth initiatives while maintaining its premium positioning in Las Vegas will likely determine whether it can achieve Santarelli’s bullish price target.
