InvestingPro's Weekly Wall Street Recap: Palantir, Starbucks, DoorDash, Wynn Resorts Updates
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Palantir Technologies: Raymond James downgrades to Market Perform, citing valuation concerns after a strong run-up in 2024.
Starbucks: Jefferies downgrades to Underperform, highlighting strategic execution challenges and low EPS growth expectations.
DoorDash: Keybanc upgrades to Overweight, projecting strong growth and favorable EBITDA estimates above consensus.
Starbucks: Bernstein-SocGen upgrades to Outperform, anticipating balanced growth under new CEO Brian Niccol's leadership.
Wynn Resorts: Morgan Stanley upgrades to Overweight, pointing to low valuation, UAE growth potential, and strong performance in Las Vegas and Boston.
Analysis: Palantir and Starbucks face challenges with valuation and execution, while DoorDash and Wynn Resorts show promising growth potential. Investors should consider these factors when making investment decisions to maximize returns and minimize risks. Morgan Stanley predicts rapid de-leveraging for Wynn despite higher leverage in 2024, with a projected ratio of less than 16x by 2022. The investment bank also forecasts Wynn's EBITDA exposure in 2025 to be 50% from Macau, 40% from Las Vegas, and 10% from Boston, with potential growth from a new project in the UAE. With an overweight rating from Morgan Stanley, Wynn's stock is expected to outperform its industry peers over the next 12-18 months.
Analysis:
Morgan Stanley's optimistic outlook on Wynn's financial health and future growth potential suggests that investing in the company could yield above-average returns. By prioritizing debt reduction and diversifying its revenue sources, Wynn is positioning itself for long-term success in the competitive casino industry. Investors should consider these factors when making investment decisions to potentially benefit from Wynn's anticipated growth and profitability.
