CIBC Upgrades Wynn Resorts

Analyst William Schmitt says the Las Vegas casino's first 34 days of operations generated gaming revenues to what he had expected for a full quarter

CIBC World upgrades Wynn Resorts (WYNN ) to sector outperform from sector perform.

Yesterday the company said Wynn Las Vegas generated $64.3 million net gaming revenues in its first 34 days of operations. Analyst William Schmitt says revenues were particularly strong from a gaming perspective as the property generated gaming revenues in 34 days equal to what he had expected for a full quarter.

He notes non-gaming revenue were trending in line with his earlier estimates. He says results ease his concerns that the company can generate meaningful revenues at Wynn Las Vegas, although he continues to expect lower normal operating margins.

Schmitt raises his 24 cents 2005 earnings per share estimate to 60 cents, $1.00 2006 earnings per share to $1.41, and $2.15 2007 earnings per share to $2.56. He has a $71 target.

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