Zacks Investment Research downgraded shares of Wynn Resorts Ltd. (WYNN) from OUTPERFORM to NEUTRAL on July 04, 2014, with a target price of $223.00.
Despite strong first quarter results, we revert to a Neutral recommendation on Wynn Resorts from Outperform owing to broader macro pressures in the countries where it operates. Adjusted earnings of $2.32 per share comfortably surpassed the Zacks Consensus Estimate of $2.11 and increased 14.3% year over year owing to top-line growth. Net revenue grew 9.8% year over year and beat the Zacks Consensus Estimate on the back of solid business in Macau. However, sustained weaknesses in demand in the U.S and credit growth concerns in China led to the downgrade. Moreover, China's crackdown on illegal money transfers, tighter restrictions on visas and an impending smoking ban continue to remain concerns. Further, stiff competition and limited diversity also act as headwinds for the company.
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