Wynn stock currently trades at $104 per share, about 26% below its pre-inflation shock high of $140 seen on March 17, 2021. The stock has been impacted by the Macau business, which saw business largely collapse over 2021 and 2022, due to China’s strongest Covid-19 restrictions which hurt tourist inflows into the region. The stock could have considerable potential for gains if its recovers to these 2021 levels. The stock was trading at a low of about $57 in June 2022 and has jumped about 82% from these levels to almost $104 currently. The gains were driven by the strong recovery in the company’s U.S. properties, namely in Las Vegas and Boston. In comparison, the S&P 500 gained about 15% during this period.
Returning to the pre-inflation shock level means that Wynn stock will have to gain about 35% if the stock recovers from $104 currently to its pre-shock highs of $140 per share. While it’s possible that the stock may recover to those levels, we presently estimate Wynn’s valuation to be around $105 per share, only marginally ahead of the current market price. While we believe that Wynn could see gains, we think that the upside for the company in the near term could be limited by concerns about the global economy and a potential slowdown in consumer spending. Our detailed analysis of Wynn upside post-inflation shock captures trends in the company’s stock during the turbulent market conditions seen over 2022. It compares these trends to the stock’s performance during the 2008 recession.
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