[ET Net News Agency, 19 November 2019] Morgan Stanley raised its target price for Wynn
Macau (01128) to HK$18 from HK$17 and maintained its "equal-weight" rating.
The research house expects Wynn Macau (group) to report 4Q property EBITDA of US$348m
(-11% YoY, +16% QoQ). Morgan now expects Wynn peninsula to benefit from the west casino
and refurbished Encore suites and register 7% YoY growth in 2020 EBITDA to US$5.3bn.
Morgan expects a sustainable dividend yield of 5-6% since the major capex ended in 2016.
However, Wynn's exposure to VIP and premium mass could result in market share decline.
Recent construction disruption in Wynn's casinos in the peninsula, which may help 2020
EBITDA. (KL)