UPDATE: Baron Capital has just announced a bullish outlook on Wynn Resorts, forecasting significant growth ahead as the stock has already surged over 44% in the past year. The investment firm believes this is merely the beginning of a robust rally, particularly as they see Wynn’s current prices as undervalued amid global trade tensions.
In their latest quarterly report, Baron Capital revealed that they acquired shares in Wynn Resorts from April to June, seizing what they view as a prime investment opportunity. The firm’s managers bought shares when they assessed that prices for Wynn’s properties in Las Vegas and Macau were at historic lows.
Importantly, Baron Capital highlights that the market is underestimating one of Wynn’s most ambitious projects—the Wynn Al Marjan Island development in the United Arab Emirates. Set to open in early 2027, this resort will mark the Middle East’s first legal gaming establishment, promising to be a game-changer for the region.
Located in Ras Al Khaimah, the resort will feature over 1,500 rooms, a diverse array of dining options from renowned chefs, luxury shopping, and extensive gaming areas catering to both regular patrons and VIPs. Baron Capital anticipates that this development will attract both locals from Dubai and international tourists, thanks to the UAE’s affluent population and its appeal as a travel destination.
“With no additional casino licenses expected in the area for several years, Wynn Al Marjan Island could gain a substantial competitive advantage,” Baron Capital stated.
Wynn’s market strategy also plays a crucial role in Baron Capital’s optimism. The firm emphasizes the company’s focus on high-end clientele, enabling it to command premium room rates and generate above-average gaming revenue per guest. This strategic positioning allows Wynn to maintain resilience during economic downturns, setting it apart from competitors.
Despite recent earnings reports indicating strong results in Boston and Las Vegas, Wynn faced challenges with VIP activity in Macau. Nevertheless, Baron remains optimistic about Macau’s future, citing a double-digit year-over-year growth in gross gaming revenue for June, suggesting a rebound is underway.
Baron Capital also mentioned the potential for Wynn’s luxury resorts to attract future buyers, although specific interested parties have not been disclosed. Market speculation has linked possible offers to private equity firms or high-net-worth individuals, but no formal actions have been taken.
Overall, Baron Capital projects that Wynn’s stock could double in the next five years, driven by its premium brand, the promising UAE project, and the anticipated recovery in Macau. The firm insists that if these elements align as expected, investors can expect a unique blend of growth, exclusivity, and strategic value in the gaming sector.
As this situation unfolds, investors and stakeholders in the gaming industry should closely monitor Wynn Resorts for developments that could reshape the market landscape.
