Why These 2 Casino Stocks Are On the Rise

Analysts remain very bullish on Wynn stock despite its recent pullback

by Josh Selway

Published on Mar 8, 2018 at 10:49 AM

Casino stocks Caesars Entertainment Corp (NASDAQ:CZR) and Wynn Resorts, Limited (NASDAQ:WYNN) are trading sharply higher out of the gate thanks to separate corporate updates. We'll dig into the news behind the moves seen from CZR and WYNN shares below.

Tax Benefit Boosts Caesars' Bottom Line

Shares of Caesars Entertainment are trading up 5.6% at $13.20 after the company posted a per-share profit of $2.48 for the fourth-quarter, thanks mostly to a $2 billion windfall from tax reform. This price action has CZR stock trading back above the 50-day moving average, as it bounces from support at the 200-day moving average.

It's still staring up at the $14 level, however, which blocked its breakout attempt in late-January and early February. And for what it's worth, the $13.33 level is roughly half the equity's all-time high from early 2014.

The analysts covering Caesars are expecting the security to breakthrough these technical levels, based on its average 12-month price target of $15.42. Just yesterday Instinet upgraded CZR to "buy" and raised its price target to $15.

WYNN Stock Bounces After Board Shake-Up

Two members of Wynn Resorts' board of directors will step down, the company announced last night, as lawsuits stemming from the sexual misconduct allegations surrounding departed CEO Steve Wynn pour in. However, the casino giant also hiked its dividend and gave another promising update for its Macau operations, sending the shares 2.5% higher to $172.61.

Elsewhere, brokerage firms Jefferies and Susquehanna raised their respective price targets to $200 and $214, respectively. Analysts at both firms cited the upbeat Macau data in their notes. WYNN touched a three-year high of $203.63 back on Jan. 25 and is up 75% over the past year, with the majority of analysts maintaining "buy" recommendations.

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