The bad news just keeps rolling in for Wynn Resorts (NASDAQ: WYNN), which has seen its shares almost sliced in half over the past year.
In late April, first-quarter earnings missed analysts' estimates by a wide mark thanks to a major slowdown in revenue from Macau, and the company cut its dividend by two-thirds.
As if that wasn't bad enough, this week, WYNN's largest shareholder, mega mutual fund firm T. Rowe Price cut its stake in the stock by nearly 40%.
And the latest sell-off was sparked by a downgrade from a Barclays (NYSE: BCS) analyst who said on Friday that it was "too early to call a bottom" in the Macau gaming market. He lowered his price target from $160 to $105.
Given WYNN's score of 38 out of a possible 200 on my own system, I think that's much too generous. I see shares headed to the support zone below $100 and likely much lower.
No comments:
Post a Comment