UBS Maintains Buy on Wynn Resorts (WYNN), Notes Move toward Stronger Free Cash Flow

Wynn Resorts, Limited (NASDAQ:WYNN) is included among the 13 Best Strong Buy Dividend Stocks to Invest in.

On February 23, UBS lowered its price recommendation on Wynn Resorts, Limited (NASDAQ:WYNN) to $146 from $148. The firm reiterated a Buy rating on the shares. The analyst said the company is shifting away from a development-heavy phase and moving toward a model focused more on free cash flow generation. This transition is expected to become clearer as geographically diversified cash flow increases, especially after the Al Marjan property opens in the first quarter of 2027.

During the Q4 2025 earnings call, CEO Craig Billings said the company is actively reshaping its portfolio to expand its geographic reach. He explained that Wynn Resorts is moving toward a structure where more than 55% of its revenue is expected to come from markets outside the US dollar. These contributions will come from properties the company has built and continues to operate. He noted that these resorts were designed with a clear focus on serving high-value customers in key global markets.

Billings also spoke about the upcoming Wynn Al Marjan Island project. He described it as a major step forward that will give the company access to a new and fast-growing region. He said the development will strengthen Wynn’s standing as a global name in luxury hospitality and gaming. As the company moves into 2026, he added, Wynn Resorts remains on track to become one of the most geographically diversified operators in its industry.

He also addressed performance in Las Vegas. Operations in the market generated EBITDA of $241 million, reflecting continued strength. Billings said demand remained healthy across Wynn’s Las Vegas properties, with drop, handle, and average daily room rates all rising compared to the prior year.

At the same time, he noted that the Encore Tower remodel is scheduled to begin in the second quarter of 2026. This renovation will temporarily reduce available room nights by about 80,000. He described this as a modest headwind, but one that fits into the company’s broader long-term plans.

Wynn Resorts, Limited (NASDAQ:WYNN) develops and operates integrated resorts. Its properties combine hotel accommodations, retail, dining, entertainment, meeting and convention space, and gaming, all within a single destination.

While we acknowledge the potential of WYNN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Best NASDAQ Dividend Stocks to Buy Now and 14 Best Low Volatility Dividend Stocks to Invest In

Disclosure: None.