Analyst lowers rating on Wynn Resorts

An analyst lowered Wynn Resorts Ltd.'s rating and price target on Tuesday, warning that the gaming company may be hampered by slowing growth in Macau and uncertainty surrounding its Cotai project.

Janney Capital Markets analyst Brian McGill said in a client note that Macau is on pace for revenue increases of more than 40 percent this year and a 20 percent jump in 2012.

However, new competition there from Las Vegas Sands Corp. and the potential for the Galaxy Macau to take business from Wynn Macau means the property may only see about a 12 percent increase in its 2012 adjusted earnings, he said.

McGill also said there may not be any "significant announcements" about Wynn Cotai possibly until late next year or early 2013, after a new central government in Beijing gets settled.

McGill cut Wynn's rating to "neutral" from "buy" and reduced its price target to $120 from $165.

Shares of Wynn Resorts closed at $112.90 on Tuesday, up 83 cents, or 0.74 percent on the Nasdaq Global Select Market.

Wynn shares are trading closer to the lower end of their 52-week range of $99.21 to $172.58.

Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.