[ET Net News Agency, 27 February 2020] J.P. Morgan lowered its target price for Wynn
Macau (01128) to HK$21 from HK$22 and maintained its "overweight" rating.
The research house believes that even the skeptics would agree that Wynn's asset quality
is among the best in Macau, if not globally, which is supported by a best-in-class
management team. In addition, its capex cycle has already peaked (at least in the next 3-4
years, before Crystal Pavilion capex kicks in materially); hence, JPM is confident about
its FCF prospects for the coming years.
JPM thus comfortably modeled dividend yields of 5%+ (and FCF yields of 10% in 2021),
which, along with its 10.5x EV/EBITDA (versus the historical average of 16x), presents an
attractive investment case. (KL)