The Dividend Daily

Casino operator Wynn Resorts, Limited (WYNN) saw its coverage initiated as a “Buy” at Deutsche Bank on Friday.

The analyst also set an $80 price target on WYN shares, which closed on Thursday at $67.61.

The Deutsche analyst noted that “Given its solid balance sheet and demonstrated prudent approach to capital allocation when thinking about the pace and scope of new development, we view WYNN as a burgeoning free cash flow/return of capital story, a facet we believe remains underappreciated by many, particularly in light of WYNN’s attractive relative valuation vs. peers with much higher leverage and/or less favorable mix.”

Wynn shares rose $1.79, or +2.7%, in premarket trading Friday.

The Bottom Line
The company has a 1.18% dividend yield, based on last night’s closing stock price of $67.61. The stock has technical support in the $59-$60 price area. If the shares can continue to climb, we see overhead resistance around the $70-$73 price levels. We would remain on the sidelines for now.

Wynn Resorts, Limited (WYNN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.