Jake Fuller, a gaming analyst with Thomas Weisel Partners LLC, is telling his clients that the share prices for Wynn Resorts Ltd. (WYNN) and Las Vegas Sands Corp. (LVS) "is right given the recent estimated cuts."
He took into account that Macau gambling today is not what Macau gambling was a year ago. In fact, according to recent reports, Macau gaming during the month of December was down 7 percent.
This followed the November report that indicated gaming revenues had increased by 3 percent.
Fuller trimmed his fourth quarter estimates for both WYNN and LVS in early December and feels confident that there is limited risk to his current ratings.
"We maintain our positive bias on both stocks on the view that current valuation appropriately discounts near-term estimate risk and we see material upside potential against recovered earnings in the 2010 to 2011 timeframe," Fuller wrote to his clients.
The analyst said he maintains an "overweight" (the equivalent to a buy rating) on both stocks. He also reaffirmed a $60 share price target on WYNN and $13 price target on LVS shares.