Wynn could see short term outperformance; Morgan Stanley

Casino operator Wynn Macau could see short term outperformance ahead of the opening of the new Wynn Palace in Jun. 2016, according to Morgan Stanley.

Morgan Stanley analysts have looked into the openings of Galaxy Macau Phase Two, and Melco Crown’s Studio City, where Melco Crown saw an outperformance following its announcement of the opening date of its Studio City by around 8 percent. Galaxy saw an outperformance of 20 percent following its own announcement.

On the other hand, Wynn Macau stock has been underperforming since the announcement of the opening date for Wynn Palace, as well as the subsequent revision of the opening date, and thus may see a outperformance in the short term, according to Morgan Stanley analysts.

“We conclude that Wynn Macau stock could see short term outperformance ahead of its scheduled opening of Wynn Palace in June 2016. Sustaining the outperformance will depend on its ability to drive market share and EBITDA growth relative to peers.”