Bank of America Merrill Lynch downgraded Wynn Macau to ‘Sell’ yesterday with a new price target of HK$20.9. This decision was a consequence of the Macau gaming industry’s underperformance over Chinese New Year, with Gross Gaming Revenue expected to tank around 50 per cent year-on-year in February to less than HK$20 billion. During the second half of next year, Wynn is slated to open its new Wynn Palace resort in Cotai. ‘We believe investors will only be willing to look far ahead and seriously consider the Cotai valuation after the sector stabilises and visibility improves’, Bank of America Merrill Lynch said in a note.
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