Baron Capital Sees Significant Growth Potential in Wynn Resorts

Baron Capital Identifies Value in Wynn Resorts Amid Market Uncertainty

Wynn Resorts’ shares have surged more than 44% over the past year. However, investment firm Baron Capital believes this rally has only just begun and has recently increased its stake in the company.

In its latest quarterly filing, Baron Capital disclosed purchasing additional shares between April and June, viewing Wynn’s stock as undervalued partly due to ongoing trade tensions. The fund’s managers perceived the prices for Wynn’s major properties in Las Vegas and Macau to be at a low point, presenting an attractive buying opportunity.

New Frontiers: Wynn’s Groundbreaking Casino in the United Arab Emirates

Baron Capital is particularly optimistic about Wynn’s development of the Wynn Al Marjan Island resort, set to open in early 2027 in Ras Al Khaimah, UAE. This project is poised to become the Middle East’s first legal casino, featuring over 1,500 guest rooms, diverse dining options from renowned chefs, upscale retail outlets, and gaming facilities catering to both casual guests and VIPs.

The firm anticipates strong demand driven by affluent locals, tourists visiting the UAE, and visitors from nearby regions. Given that no new casino licenses are expected to be issued in the region for several years, this exclusive position could grant Wynn a durable competitive advantage in the area.

Wynn’s Luxury Market Focus and Global Presence Strengthen Investment Appeal

Baron Capital’s bullish outlook is also rooted in Wynn’s strategy of targeting the luxury gaming and resort market. This focus enables the company to command premium rates for accommodations and generate above-average gaming revenue per visitor. Such a strategy is seen as resilient during economic downturns and distinctly differentiates Wynn from its competitors.

Although Wynn’s recent financial results were a mixed bag—with robust performance in Boston and Las Vegas offset by subdued VIP activity in Macau—Baron Capital remains confident about Macau’s long-term recovery. June’s notable year-over-year growth in gross gaming revenue signals improving market conditions supported by increased Chinese tourism and consumer spending, which could enhance Wynn’s prospects in the region.

Potential Future Transactions and Long-Term Growth Prospects

Baron Capital also highlighted that Wynn’s portfolio of luxury resorts might attract future acquisition interest. While no specific buyers have been identified, industry rumors hint at possible interest from private equity firms or wealthy individual investors, although no formal bids have yet emerged.

Overall, Baron Capital projects that Wynn’s stock value could potentially double over the next five years. The firm cites the strength of Wynn’s premium brand, the undervalued status of its UAE project, and the promising rebound in Macau as key drivers. If these elements align as anticipated, investors might benefit from a unique combination of growth potential, exclusivity, and strategic positioning within the gaming and hospitality sector.