International edition
September 25, 2020

"High operating leverage" expected for the future

Morgan Stanley: don't underestimate Wynn Palace Macau potential

Morgan Stanley: don't underestimate Wynn Palace Macau potential
Despite earnings initially falling short of expectations, the market may be underestimating the potential of the US$4.3bn Wynn Palace in Macau, Morgan Stanley said.
Macau | 10/25/2016

Despite earnings initially falling short of expectations, the market may be underestimating the potential of the US$4.3bn Wynn Palace in Macau, Morgan Stanley said.

&

ldquo;The opening of Wynn Palace has been disappointing, and consensus may revise down EBITDA expectations for 2017,” Morgan Stanley analysts said in a note.

“However, we believe that as this is priced into Q3 2016 results, we see a buying opportunity emerging for the stock, especially for longer-term investors.

“We expect consensus to revise down its 2016/17 earnings, but this could reverse in future due to high operating leverage, resumption of market mass revenue growth and rectification of initial operational issues.”

The analyst said it expects Wynn Macau EBITDA to grow from $676m in 2016 to $961m in 2018.

What is your opinion about this article?
  • I like it
    %
    0 votos
  • I don't like it
    %
    0 votos
  • I have not thought about it
    %
    0 votos
Leave your comment
Newsletter Subscription
Subscribe to receive the latest news and updates
Enter a valid email
Complete the captcha
Thank you for registering to our newsletter.
Follow us on Facebook