Damo believes that the increase in market share of Wynn Macau in January and February of this year has an opportunity to translate into better results for the first quarter of 2024.
The Zhitong Finance App learned that Damo released a research report stating that it gave Wynn Macau (01128) an “additional” rating, with a target price of HK$8.4. The company's recent stock price has declined, making its short-term valuation more attractive. According to industry news, the bank believes that the increase in the company's market share in January and February of this year has an opportunity to translate into better results for the first quarter of 2024.
The bank feels that the company's current valuation is attractive. The current price is equivalent to 9 times the annualized EBITDA for the fourth quarter of 2023, and the seller also agreed that the 2024 EBITDA will run at a rate of 2% lower than the fourth quarter of 2023. Therefore, Morgan Stanley believes that the stock price of Wynn Macau has more than 80% chance and will outperform the market within 60 days.