We have upgraded our rating on Wynn Resort (WYNN: 86.40 +0.37 +0.43%) from Neutral to Outperform as the company’s first quarter 2010 earnings were well ahead of the Zacks Consensus Estimate, primarily driven by better-than-expected top-line growth and improvements in the bottom line.Additionally, with global economy showing gradual recovery, the company is experiencing an increase in demand. Its Las Vegas business, which was worst hit at the time of slowdown is also rebounding.
We remain encouraged with the company’s strong brand name, healthy balance sheet, relatively low capital requirements and ability to execute in a difficult operating environment.
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