Following a challenging 2024 where Wynn Resorts (NASDAQ: WYNN) experienced a 5% decline, analysts are positioning the company as a promising casino stock for 2025.

Stifel analyst Steven Wieczynski has designated Wynn as the top large-cap casino pick for 2025, setting a price target of $123 - a potential 46% increase from the January 3 close. Despite disappointing performance of Macau gaming stocks in 2024, increasing gross gaming revenue (GGR) suggests companies with exposure to the region are currently undervalued.

Macau operations are expected to show continued improvement in 2025, with projected GGR growth between 4% and 10%. While gaming revenue may remain below pre-pandemic levels, potential monetary stimulus from China could provide additional upside.

Wynn's high-end market positioning provides distinct advantages:

• Premium clientele less affected by Chinese economic fluctuations
• Strong performance in Las Vegas despite challenging comparisons
• Unmatched asset quality in the luxury segment
• Substantial prime Strip real estate for future development

The upcoming Wynn Al Marjan Island project in the UAE represents a significant growth opportunity. Set to open in approximately two years, this first-ever casino resort in the Arab world could add $10-17 to the share price. The hotel tower is scheduled for topping off by end of 2025.

Analysts expect improving Macau market fundamentals and strong Las Vegas operations to drive share value, supported by consistent free cash flow generation and strategic growth opportunities.

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