Susquehanna raised its price target on Wynn Resorts (NASDAQ:WYNN) to $95 from $92 and kept a Positive rating on Thursday, according to Investing.com. The stock traded at $83.08 at the time of the report, down 33.6% year-to-date and 38% below its 52-week high of $134.72.
The casino operator reported third-quarter consolidated revenue and EBITDAR that missed expectations by 4% and 5%, respectively. The report attributes the shortfall to lower Macau volumes, Las Vegas hold, and a labor strike at its Boston property.
Susquehanna said third-quarter expectations were already lowered after earnings updates from Las Vegas Sands, Melco Resorts, MGM Resorts, Caesars Entertainment, and Sphere Entertainment. The firm cited bullish commentary on Las Vegas fourth-quarter trends and Wynn's pricing power.
According to the firm, the Al Marjan project remains on target. Susquehanna said Wynn can withstand market pressure in Macau given its offering and continued reinvestment rates. It expects the company's capital projects to begin paying off over the next 9 to 12 months.
The firm noted the company's leverage at 4.7 times. It said the stock has been exposed to higher interest rates and volatility in the United Arab Emirates and Macau markets.