Goldman Sachs has dropped the US-based operator’s rating from “buy” to “hold”.
Macau.- Goldman Sachs has downgraded Wynn Resorts from “buy” to “hold” due to the performance of its Macau business.
The US-based operator was also removed from Goldman’s “Conviction Buy List” because of the slow recovery of Wynn Macau from the Covid-19 impact.
Goldman Sachs mentioned that Wynn is the Macau operator that is most dependent on VIP business, which might take time to recover.
This Chinese market normally accounts for two thirds of the operator’s revenue.
In August Wynn Macau reported a drop of 79.2 per cent in operating revenue for the first half of 2020. The group also fears it could be affected if tensions between the US and China continue to escalate.
Visitation in Macau has slowly begun to recover after Guangdong and Zhuhai resumed the individual visit scheme (IVS) visas system last month. The IVS is expected to resume for the rest of mainland China from September 23.