Analysts believe Wynn Resorts stock may be undervalued given UAE growth potential but risks remain.
Wynn Resort’s Al Marjan Island project could earn them more than half a billion dollars in revenue by 2030, according to analysis undertaken by investing.com.
The analysis suggests that this potential extra revenue, in addition to an expected recovery in Macau (where geopolitical tensions have made business challenging) and continued strong performance in Las Vegas, means Wynn Resorts stock may be undervalued.
Wynn Al Marjan Island in Ras Al Khaimah will feature the first ever licensed gambling areas in the UAE when it opens in 2027.
The GCGRA, UAE’s gaming regulator, issued Wynn Resorts with an official gaming license last year.
No other land-based gaming operators have been awarded licenses to date - nor have any UAE online casinos or betting sites - so these are truly uncharted waters.
This first-mover advantage presents Wynn Resorts with “a significant opportunity for long-term growth” and could contribute $15 or more per share to the company’s economic EBITDA, per investing.com’s analysis.
However, the analysis also highlights the risks associated with Wynn’s trailblazing Middle East expansion.
Cultural and regulatory challenges could potentially derail the project and its high capital expenditure may put pressure on Wynn Resorts’ financial position, especially if demand for gaming facilities in the region has been overestimated.
