Wynn Resorts Ltd.WYNN

Morningstar Rating

Stock Research and Analysis

by Michelle Chang, CFA

Wynn Resorts has taken a leading position in Las Vegas and has become a major player in Macau. We like this casino operator's record and prospects, and we are moving our fair value uncertainty rating to high from very high to better reflect our expected Read more

Bulls Say

Steve Wynn has been one of the most successful casino developers in Las Vegas history. He created an enormous amount of shareholder value at Mirage Resorts and again at Wynn Resorts.

Macau has granted only six gaming concessions, and one belongs to Wynn Resorts. Macau is China's only gaming destination, and the market benefits from its high population density. It's within a three-hour flight of more than 1 billion people and a five-hour flight of more than 3 billion people.

Average wins per table in Macau are multiples higher than those realized in Las Vegas or Atlantic City because of a dramatically underserved market and a disproportionate mix of high-end table gaming. Read more

Bears Say

Wynn is finding that operating in China has a unique set of risks and obstacles. The Chinese government can implement visitation policies, like capping the number of visits to Macau from the neighboring Guangdong province of China.

High-end competition on the Strip is intensifying, and a host of upscale capacity is scheduled to come on line during the next few years, even in a troubled economy. It is possible that these new properties will take customer traffic away from Wynn or force the firm to heavily promote to maintain high occupancy levels.

The company depends a great deal on Steve Wynn. Not only is he the visionary and prime fund-raiser, but his departure for reasons not related to health can trigger accelerated debt repayments. Read more

Strategy

Steve Wynn aims for pre-eminent luxury in the most luxurious city in America. As he did with the Mirage and the Bellagio, Wynn wants to outdo the best hotels in Las Vegas, appealing to high rollers and Read more

Management

Wynn Resorts is the brainchild of Steve Wynn, one of the great developers in Las Vegas history. He bought the site for Wynn Las Vegas only months after he negotiated the sale of his previous firm, Mirage Resorts, to MGM Grand MGM in 2000. Wynn had been Read more

Profile

Wynn Resorts began casino operations with the opening of Wynn Las Vegas in April 2005. Steve Wynn, who as head of Mirage Resorts was responsible for building Treasure Island, Read more

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