Wynn Stock Can Double Over Five Years, Could Lure Buyer, Says Baron Capital
Posted on: August 11, 2025, 12:36h.
Last updated on: August 11, 2025, 12:43h.
- Fund manager started new position in casino operator
- Sees Wynn stock valuation as favorable
- Says company isn’t getting much credit for UAE project
Shares of Wynn Resorts (NASDAQ: WYNN) returned an impressive 44.5% over the past year, but some investors believe there’s much more growth ahead — the kind that could reward patient market participants.
In its second-quarter commentary for the Baron Discovery Fund, Barron Capital said it initiated a position in Wynn stock early in the April through June period as the shares languished amid tariff concerns. Wynn and Las Vegas Sands (NYSE: LVS) — two US-based operators that run a combined seven Macau integrated resorts — saw their stock slump in March and into early April amid fears that China could retaliate against US trade levies by possibly stripping US companies of Macau licenses.
That didn’t happen, and with the benefit of hindsight, investors, including Baron Capital, who embraced Wynn stock in early April have been rewarded.
We took advantage of this weakness by building a position at what we believed were attractive prices,” notes the fund manager. “Our analysis showed that we were buying the stock at trough valuation multiples on both the Las Vegas and Macau properties and we were getting the upside from the currently under construction Al Marjan Island project (located in the UAE) for essentially free.”
Wynn reported second-quarter results last week, with the shares retreating on data indicating VIP hold in Macau was tepid. That overshadowed better-than-expected results at the operator’s Boston and Las Vegas Strip casino hotels.
Wynn is Different, May Be Alluring to Suitors
Baron points out that while Wynn stock has jumped since the fund manager’s initial buy, the shares have the potential to double from here over the next five years. The asset manager adds, “Wynn’s five-star quality resorts could potentially be attractive to an acquirer.”
Scuttlebutt regarding Wynn being a takeover target is long-running and hasn’t produced a transaction as of yet. It’s largely centered around the possibility of a private equity company or Tilman Fertitta — Wynn’s biggest shareholder — making a play for the operator. Baron Capital didn’t mention either of those possibilities.
The fund manager believes much of the bull thesis on Wynn stock is actionable today, including the operator’s ability to set itself apart from many of its rivals.
“We believe Wynn remains the most differentiated operator in the gaming sector with a premium offering that caters to high-end customers,” adds Baron. “This focus on premium service enables the company to command higher room rates and gaming revenue per visitor. This also helps to insulate the company during more challenging macroeconomic periods.”
Wynn Deserves More UAE Respect
In stating its bull case for Wynn stock, Baron Capital echoed a familiar refrain: the operator deserves more credit for Wynn Al Marjan Island in the United Arab Emirates (UAE). That integrated resort is scheduled to open in early 2027 and will be the first regulated gaming venue in Middle East history.
Gaming won’t be the centerpiece of the property, but there’s no denying that the UAE’s massive local wealth and its status as a prime destination for affluent international tourists are supportive of Wynn’s efforts there. Plus, regulators there aren’t expected to approve another casino license for at least several years, indicating Wynn Al Marjan Island will hold a multiyear monopoly.
“The property should generate strong demand from Dubai residents, Ras Al Khaimah vacationers, and direct international visitors. Construction is well underway, and the resort is on pace to open in the first quarter of 2027,” observes Baron Capital. “We are bullish on the prospects for this integrated resort, and we think the stock is ascribing almost no value to the project currently.”
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