- Morgan Stanley thinks Wynn Resorts (NASDAQ:WYNN) needs to focus on the mass market segment with the new Wynn Palace property in Cotai.
- "We think the grind mass segment is important because it is growing, has a higher margin structure and could easily be moved from Cotai peers (i.e., not self-cannibalised)," writes the MS team.
- An important on-the-scene observation from Wynn Palace is that light rail construction could limit mass market foot traffic in the near term. Also, early reports from the casino indicate that traffic has been light at the premium mass-market rooms.
- WYNN -0.61% premarket to $89.30.