Texas Capital Outlines Macau Projects and UAE Expansion as Core Growth Drivers for Wynn Resorts and Melco

Texas Capital Securities identifies several property-specific catalysts for Wynn Resorts Ltd and Melco Resorts & Entertainment Ltd that could drive future performance. Analyst David Bain issued the assessment in a Monday report following a meeting with Wynn Resorts representatives earlier this month. Despite uneven trends in Macau gross gaming revenue, both operators maintain focused investment plans in core and new markets.

Wynn Resorts Maintains Macau Conviction Amid Softness

Wynn Resorts continues to regard Macau as “very solid” with “strong investment potential.” The brokerage highlighted the planned Enclave hotel tower development at Wynn Palace and an associated theatre project as examples of investments positioned to support longer-term results. Macau has experienced uneven GGR trends, linked to softer macroeconomic conditions in China, challenging year-on-year comparisons, clarified tax treatment of offshore accounts that could affect premium-mass and VIP liquidity, and possible delays in visa approvals.

Outside Macau, the Wynn Al Marjan Island casino resort in Ras Al Khaimah, UAE, remains on track for a September 2027 opening. The US$5.7 billion development, in which Wynn Resorts holds a 40-percent equity stake alongside local partners, has potential contribution not yet reflected in share valuation. Expectations on investment returns have not materially changed despite geopolitical tensions in the Middle East, as reported by GGRAsia.

Melco Positions for Post-Disruption Growth

For Melco Resorts, the fuller opening of the REM hotel at City of Dreams Macau later this month is expected to deliver greater revenue visibility as operating costs allocated to the venue decline from initial stages. Bain indicated the third quarter could represent a low point for earnings before property-specific disruption gives way to growth. The brokerage also cited the operator’s relatively low share valuation and active repurchase programme as supportive factors.

Melco Resorts repurchased approximately US$121 million of shares in the second quarter, leaving about US$590 million available under existing authorisation. Texas Capital anticipates further repurchases at current equity levels. The firm estimates the company’s free cash flow yield at approximately 24 percent and notes shares trade at about 6.5 times estimated 2027 enterprise value to EBITDA, near an all-time low. Projections show group adjusted EBITDA rising to US$1.22 billion in 2027 from US$1.17 billion in 2026.

Reporting: GGRAsia

Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.