Deutsche Bank analyst Carlo Santarelli has defied expectations for the casino resorts sector, posting an upbeat outlook for Wynn Resorts. According to Santarelli, Wynn’s shares will soar.

Wynn Resorts Is Gathering Financial Momentum

He bases this outlook on several main factors that are going to drive an upsurge in the company’s stock over the next months. One of those is the return of travelers in Macau, which will help Wynn’s overseas operations.

At the same time, footfall has been picking up on the Las Vegas Strip, and the company is already building its Al-Marjan Island in the United Arab Emirates (UAE), the very first casino resort in the country, which should yield fantastic dividends in the long run.

With Al-Marjan Island’s construction getting underway last week, investors are still hesitant about the share value of the company, which means that the stock is presently underappreciated and bound to pick up in the next months.

Santarelli argues that Al-Marjan Island will be driving strong returns for the company. About 90% of the UAE’s population of 10 million people are expatriates and can therefore gamble. Of course, the project is leaning in heavily on tourism as well and will be a global destination for not just gambling, but also meetings in the Middle East.

Another reason for optimism in the long term is that the tax structure of the UAE is very generous – only 13%. In the meantime, Wynn is also working with a real estate developer in New York City, Related Cos. This investment, though, may not pay off immediately.

The newly-planed venue at the Hudson Yards is probably going to take a long while before it sees a payoff, but this doesn’t mean it would fail to. Wynn is expected to get a 15% return on investment if the project is finally approved – and if the project is approved. The three downstate permits for new casinos have not yet been issued in the Empire State.

WynnBET Still Meaningful Driver of Value

Meanwhile, WynnBET, the most omnipresent asset of the company is not going to be one of the company’s strongest. The interactive division is indeed a bit slower, but it’s not out of the picture at all. Just the opposite, Santarelli has called the asset a “meaningful driver of value.”

WynnBET has been very fast to cut its losses, and even though it posted a loss of $99 million in 2022, it’s doing way better than competitors who posted triple-digit losses.

The post Deutsche Bank Upbeat about Wynn Prospects appeared first on Keno Wizard.