It could be forgiven, thinking that casino stocks like Wynn Resorts (WYNN) would have a tough time right now when disposable income is facing a lot of challenges. With people focusing on necessities, the idea of going out gambling for a night seems like a bridge too far for many. But for Wynn, new casino plans are giving it a bit of a leg up, and shares are up fractionally in Friday afternoon’s trading.
One of the latest plans is for a casino at the Hudson Yards in Manhattan, in New York City. The plan, if it goes through, would set Wynn back $12 billion, but it is already drawing interest. Christine Quinn, former New York City Council Speaker, has come out in favor of the plan, citing its likely potential for new jobs and new revenue in the area, which would likely help the problem of homelessness in the area.
The plan that Wynn envisions, reports note, not only features the casino but also a 5.6-acre park for the public, office space, a new school, and 1,500 new homes, which would indeed take a bite out of New York’s homeless problem. However, not everyone is as enthusiastic; supporters of the High Line, a public park space in the proposed area, are opposed to the Wynn project.
Going Beyond Manhattan
But Wynn’s plans don’t begin and end in the Empire State. Wynn is also working on getting together a casino operation in the United Arab Emirates (UAE). Construction on the new facility is already underway, but there are still some questions about whether or not the new facility will have much impact on the share price.
Wynn management is working to get a casino on the Al-Marjan Island, part of the Ras Al Khaimah integrated resort. Joseph Greff, a JPMorgan analyst, noted that the move may be farther along than expected, thanks largely to Wynn’s plan to host an investor day event around the move. If approval were not forthcoming, Greff posits, then why would Wynn host the event to begin with?
Is WYNN a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WYNN stock based on nine Buys and four Holds assigned in the past three months, as indicated by the graphic below. After a 17.66% loss in its share price over the past year, the average WYNN price target of $121.75 per share implies 57.63% upside potential.
