[ET Net News Agency, 12 December 2018] Deutsche Bank lowered its target price for Wynn
Macau (01128) to HK$18.4 from HK$22 largely to reflect lower 2019-20 earnings forecasts
and downgraded its rating to "hold" from "buy".
The research house cut its 2019 EBITDA forecasts for the Macau companies by 11%.
DB said it worries that Macau's VIP segment may turn negative in 2019, and Wynn has
higher exposure to this segment. It values Wynn Macau on 12x 2019 EV/EBITDA and sees this
valuation multiple as fair, as Macau stocks typically de-rate to this level during a
downward earnings revision cycle when GGR growth decelerates. (KL)