Goldman raises Wynn estimates after Macau-driven earnings beat

    Goldman Sachs said it’s raising its 2014 to 2016 EBITDA estimates for Wynn Resorts following better-than-expected first-quarter earnings. The forecasts have been raised by 1 percent and 3 percent respectively. The firm also increased its sum-of-the-parts share price target to HK$37.8 from $37.1. Goldman Sachs said the group’s various initiatives have helped it regain some market share since the third-quarter of last year, however, that momentum is now slowing and further gains may have to wait until a new gaming area is completed in Macau next year. Goldman noted that The Wynn Palace is on schedule to open in the first quarter of 2016. There are 2,000 construction workers on site currently and it will bring in 1,000 more by October. The company has said that it is in talks with the government on its Cotai Phase 2 project, a mass market focused property. The two phases together will cost $8-9 billion.
    In a separate note, Sterne Agee lifted its rating on Wynn Resorts to Buy from Neutral saying the shares are now down 17 percent from their 52-week top and mark a good entry point. It bases its optimism on talk the company will gain 552 table approvals from the government for its new gaming area in Macau. “At this point, we find the story too compelling to remain sidelined,” it said. Obtaining 552 table approvals from the Macau Government would exceed our previous expectation for a final approval of 400 tables, it said, adding four of five operators planning expansion have requested 500 tables for new properties.