[ET Net News Agency, 4 March 2021] UBS Global Research lifted its target price for Wynn
Macau (01128) to HK$17.4 from HK$14.1 and upgraded its rating to "buy" from "neutral".
The research house expects Macau's GGR to reach 58% of the 2019 level in 2021 and be on
a par with the 2019 level in 2022. It also expects mass to outperform the VIP segment in
the potential recovery.
UBS said the stock has underperformed in 2020 and year-to-date on the back of regulatory
tightening on the VIP segment, which has been priced in. Wynn is shifting focus to premium
mass by rechannelling resources from VIP. This represents an upside risk for the company.
UBS believes the company's all-premium hotel products and changes to non-gaming
facilities to cater to premium mass customers should enable Wynn to capture more market
shares in the premium mass segment and cushion the increasing competition from the new
competitive supply. (KL)