[ET Net News Agency, 3 September 2020] Morgan Stanley lowered its target price for Wynn
Macau (01128) to HK$17 from HK$18 due mainly to the 26% higher interest expense from the
new notes. It maintained its "overweight" rating.
The research house lowered Wynn's 2020 GGR by 18% but increase its VIP by 3% to reflect
its expectation of VIP market share gains for the rest of the year. This increases its
rebate estimates and 2020 net revenue is 24% lower as a result.
Due to operating leverage, 2020 LBITDA is 566% larger and 2020 net loss is 38% larger.
Morgan's 2021/22 estimates for net profit are 13% and 9% lower mainly due to US$86m in
extra interest expenses per year from the US$1.6bn new bonds raised in June and August.
(KL)