Wynn Stock Potentially Doubles over the Next Five Years, Attracting Possible Buyers, Predicts Baron Capital
Wynn Resorts, the casino operator known for its premium service and high-end properties, is gearing up for a significant expansion with the upcoming opening of Wynn Al Marjan Island in the United Arab Emirates. This move marks a strategic shift for the company, signaling its ambitions in new luxury gaming and resort markets.
The UAE project, set to open in early 2027, will be the first regulated gaming venue in Middle East history. Wynn's focus on premium service is expected to command higher room rates and gaming revenue per visitor, a factor that has contributed to the company's success in Las Vegas and Macau.
Baron Capital, a fund manager, is particularly bullish on the prospects for Wynn Al Marjan Island. They believe the stock is currently ascribing almost no value to the project, making it an attractive investment opportunity. The fund manager has recently started a new position in Wynn Resorts, buying the stock at what they deemed attractive prices.
The financial health of Wynn Resorts is also noteworthy. The company's indirect subsidiary, Wynn Macau, Limited, recently completed a $1 billion senior notes issuance due 2034 at a 6.75% coupon. This move demonstrates Wynn’s access to capital markets, even as borrowing costs are elevated. Despite the high coupon rate, Wynn Resorts maintains strong control over its Macau operations, with about 72% ownership.
While there is no explicit announcement about imminent mergers and acquisitions (M&A) deals involving Wynn Resorts, the company's strong liquidity and strategic initiatives provide a sound platform that could accommodate future acquisitions or partnerships if aligned with corporate growth objectives.
Baron Capital predicts that Wynn stock could potentially double over the next five years, reflecting their confidence in the company's growth prospects. They also believe that Wynn remains the most differentiated operator in the gaming sector.
The construction of Wynn Al Marjan Island is well underway and progressing as planned, with the project on pace to open in the first quarter of 2027. The fund manager sees the upside from the currently under construction Al Marjan Island project for essentially free, making it an appealing investment opportunity.
[1] Source: Wynn Resorts' official website and financial reports [3] Source: Wynn Resorts' 2025 annual report [5] Source: Wynn Macau, Limited's press release on the senior notes issuance
- The financial reports from Wynn Resorts indicate that the company recently completed a $1 billion senior notes issuance due in 2034, showcasing its access to capital markets even in high-interest environments.
- Baron Capital, a fund manager, has started a new position in Wynn Resorts, citing the potential for Wynn Al Marjan Island to double the stock's value over the next five years, reflecting their confidence in the company's growth prospects.
- The UAE's Wynn Al Marjan Island, set to open in early 2027, is not just a regulated gaming venue but also a strategic move by Wynn Resorts to expand into luxury gaming and resort markets beyond Las Vegas and Macau.
- Wynn Resorts' focus on premium service, as demonstrated in its highly successful operations in Las Vegas and Macau, is expected to lead to higher room rates and gaming revenue per visitor, attracting investors in the Asia Pacific gaming sector.
