Wynn Resorts Ltd (NASDAQ: WYNN) is known for their luxurious resorts and casinos. In 2002, Steve Wynn who was known for building incredible resorts and casinos since the 1970’s founded his own company. Ever since, the Wynn name has been synonymous with luxury, and has grown into a global organization. Wynn Resorts controls the high-end luxury niche of the casino industry, allowing them to enjoy the highest revenue and EBITDA in the industry.
Wynn is positioned to participate in the long-term growth opportunity of Macau (70% of EBITDA) and will see an expanding room share with the opening of its property Cotai Palace planned opening in 2016.
Morningstar has set a 5 star rating on Wynn Resorts, with a Fair Value price of $152.
As of this writing, WYNN’s price is $58.00. That means Wynn is trading at a 63% discount from the price that Morningstar says would be a good deal. They set a “Fair Value Estimate” of $152 which is nearly 3 times today’s price. Finally, they established a long term “Consider Sell” price of $235.60. So we recommend buying the call options now while the stock is low and holding for the long term.