Bear Stearns is raising their Wynn (NASDAQ:WYNN
) LV EBITDA projection to $92.1m from prior $84.5m, based on their checks of strong high-end volumes throughout the 1Q. Firm is also raising their Wynn Macau EBITDA projections, which they base on a continued ramp up of that property (due to growing market share, strong table and slot volumes, overall market wide gaming revenue growth in the 1Q07). Firm is raising their all-in 1Q07 EBITDA projection +$10mm to $144m. 1Q07 EPS goes to $0.61 from $0.52, which is $0.08 above Consensus.
They continue to believe WYNN is a solid play on two 1H07 themes in the gaming sector:
1) strong high-end trends on the Las Vegas Strip and
2) growing market shares gains (Wynn specifc) and increasing EBITDA/cash flows in the growing Macau gaming market.
On a risk-adjusted basis, they prefer WYNN over LVS in the near-term.
Reaffirm Outperform rating and YE07 PT of $124
Notablecalls: WYNN's a mover and as ests are raised above consensus we may see the stock move over the $100 level today.