According to the latest analysis by CBRE, the process of issuing casino and integrated resort licenses in the UAE seems to have slowed down, which makes the leading advantage of Wynn Resorts in the local market more valuable.
In the "Las Vegas Executive" report released by CBRE last night, the agency's analysts recently held talks with senior executives of several gaming companies headquartered in Las Vegas. The report emphasizes that Wynn's flagship project in the UAE, Wynn Al Marjan Island, is steadily progressing and is expected to open as scheduled in 2027, which is almost a certainty.
Although Wynn's stock price has not yet fully reflected the market potential of the UAE project, CBRE analysts pointed out: "At present, the pace of issuing more integrated resort licenses in the UAE has slowed down, which undoubtedly allows Wynn to extend its lead in the market for at least a few years, if not longer."
"Although we still believe that the second license will eventually be approved, which will help boost investor confidence in the market (thereby pushing up valuations), comparatively, the long-term value gained from the extended lead period may be more attractive for Wynn."
CBRE also noted that Wynn's management is currently highly focused on the Al Marjan Island project and considers it the most important growth opportunity in the company's history.
"Wynn is fully advancing the Al Marjan Island project, from asset development, entertainment and non-gaming facility planning, to understanding local customer needs, to training employees who meet Wynn standards, all of which require significant effort," CBRE wrote.
Furthermore, CBRE mentioned that the global market demand for the Wynn brand remains strong, as evidenced by its recent acquisition of London's Crown Aspinalls. The report predicts that after the completion of the flagship project in the UAE, Wynn will have broader international expansion space.
Meanwhile, Wynn is accelerating its stock repurchase program, actively repurchasing shares before the market fully reflects the potential of the UAE project.
"We expect Wynn's repurchase actions to remain intense (as of December 31, the company still has $813 million remaining from its $1 billion repurchase authorization), and may further extend until the market fully recognizes the growth potential of Al Marjan Island."
