JPMorgan Rates WYNN MACAU as 'Overweight' with HK$7.5 Target Price

Deep News
05/11

JPMorgan released a research report stating that WYNN MACAU's first-quarter performance was solid and met expectations. After adjusting for VIP room luck factors, the quarterly adjusted property EBITDA was $296 million, increasing 3% quarter-over-quarter and 2% year-over-year, which is similar to the market expectation of $298 million. The firm assigned an 'Overweight' rating to WYNN MACAU with a target price of HK$7.5.

The report highlighted that a notable aspect of the quarterly results was the group's announcement to expand the all-suite hotel tower "Wynn Enclave" at Wynn Palace in Cotai, which will add 432 suites. This is expected to increase the number of rooms and suites by approximately 25% and 50%, respectively. The project's capital expenditure is estimated at $900 to $950 million, equivalent to about $2.1 to $2.2 million per room. Construction is expected to commence in the second half of 2026 and be completed in the first half of 2029. JPMorgan estimates that the project could enhance Wynn Palace's property EBITDA by approximately 10% to 20%, driving an investment return rate in the low to mid-teens.

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