JP Morgan bullish on Wynn Macau

2013-4-18

From：Macau Business

JP Morgan is bullish that Wynn Macau Ltd’s share price is set to rebound, the investment bank wrote in a note released earlier this week.

It has raised the Hong Kong-listed company’s price target to HK$27.8 (US$3.58) from HK$26.5, according to Bloomberg.

“Market share losses, premium valuation and slower-than-peers’ earnings growth have dragged Wynn Macau’s price performance over the past year. But this is no longer the case,” analysts Kenneth Fong and Daisy Lu wrote.

According to them, a stabilising competitive environment in Macau, with no new supply over the next two years, and better yield management have helped the company regain market share in all segments.

“We believe a potential strong first quarter result (early May), dividend payment (June 6), consensus earnings upgrades and easy industry revenue growth comparison (starting May) are catalysts,” they wrote.