Wynn Rises Amid Positive Analyst Note

Lawrence Klatzkin of Jefferies & Co. said the stock's 16 percent slide since Dec. 10 should not frighten investors since the Las Vegas-based company will experience strong expansions in both Las Vegas and Macau.

Wynn plans to open its $2.2 billion Encore casino-resort next to Wynn Las Vegas in April 2009 and has 142 acres of Las Vegas land available for development. The company also expanded Wynn Macau's casino operations last month, adding 85 more gaming tables and 551 new slot machines.

In Macau, Wynn has also started construction on a planned tower called Wynn Diamond Suites. The tower, which will house 400 suites and villas as well as restaurants, retail and gaming space, is estimated to cost up to $600 million and is set to open in February 2010.

Wynn may also be helped further if it receives a Japanese casino license, Klatzkin added. On the heels of Macau's booming casino business, Japan has considered drawing up legislation that would allow gaming facilities to be developed there. The region is being closely eyed by companies such as Wynn and Las Vegas Sands Corp.

Klatzkin maintained a "Buy" rating but lowered his price target to $147 from $152. The analyst also trimmed his fourth-quarter profit estimate to 69 cents per share from 75 cents per share citing lower Macau margins as more VIP plays move to Melco PBL Entertainment Ltd.'s Crown Macau amid higher promotional activity.

He also cut his 2008 profit forecast to $3.47 per share from $3.62.

Shares of Wynn Resorts added 28 cents to $104.50 Tuesday after rising as high as $109.95 earlier in the day. Over the past 52 weeks, the stock has traded in a range of $85.53 to $176.14.