Bank of America upgrades Wynn Resorts as it enters the Middle East market

On May 7, 2025, Bank of America announced an upgrade of Wynn Resorts' stock from neutral to a buy rating, providing a notable shift in outlook for the casino operator. This decision was supported by increased optimism regarding Wynn's upcoming projects, particularly the Wynn Al Marjan Island, which is set to open in early 2027 in the United Arab Emirates. The resort will be the first major integrated casino facility in the Middle East, providing Wynn with a first-mover advantage in a burgeoning market. Analyst Shaun Kelley emphasized that the UAE's favorable tax environment and growing wealth are creating a market ripe for tourism investments. He projects significant upside potential for Wynn's stock price, raising his target from $90 to $100, suggesting around a 20% growth. Kelley highlighted that investor sentiment could improve over the next 12 to 18 months as the construction progresses, noting that current market conditions could lead to a more favorable price evaluation for Wynn’s stock. Additionally, the report mentions that Wynn’s performance in Macau remains stable, with consistent market share, while its Las Vegas properties continue to excel. Despite the economic uncertainties derived from macro issues and the two-year wait for the UAE project to materialize, Kelley expressed confidence in Wynn's ability to weather these challenges. The anticipated returns from UAE operations could ultimately revitalize Wynn’s financial performance and diversify its revenue sources away from Macau, which has been a point of concern. Wynn Resorts’ stock rose by over 3% following the announcement, reflecting renewed investor confidence as a result of Bank of America's endorsement. The current stock standing also benefits from broader analytical support, as a majority of experts hold positive views on Wynn's future prospects. Overall, Bank of America’s upgrade indicates strong belief in Wynn’s strategic direction and the potential for growth in the Middle East market, a reflection of the ongoing globalization of the casino industry.