Baron Capital Sees Big Upside in Wynn Resorts

Wynn Resorts’ stock has risen over 44% in the last year, but Baron Capital thinks this is just the beginning of the rally. 

Baron Capital Spots Chance in Wynn’s Low Price and Pioneering UAE Casino

The investment firm revealed in its latest quarterly report that it bought shares in the casino and luxury resort company from April to June. Baron Capital saw this as an opportunity to take advantage of what it considered undervalued stock prices due to wider trade conflicts.

The fund’s managers said they bought Wynn shares when they thought the prices for its Las Vegas and Macau properties were at their lowest. What is more, they think the market gives almost no value to one of the company’s biggest projects — the Wynn Al Marjan Island development in the United Arab Emirates set to open in early 2027.

Situated in Ras Al Khaimah, this resort will be the Middle East’s first legal gaming spot. The plans include over 1,500 rooms for guests, lots of dining choices from well-known chefs, high-end shops, and gaming areas for both regular people and VIPs. Baron thinks the place will draw in Dubai locals, people on holiday from nearby, and visitors from around the world, thanks to the UAE’s rich population and appeal to tourists. Since no other casino permits are likely to be given out in the area for a few years, this project might have a long-lasting edge over competitors.

Luxury Strategy and Worldwide Expansion Make Wynn a Top Pick for Baron Capital

Baron Capital’s investment thesis also depends on Wynn’s place in the gaming industry. The firm pointed out that Wynn’s focus on high-end customers lets it set premium room rates and bring in above-average gaming revenue per guest. This approach, they claim, gives the company strength during economic downturns and sets it apart from competitors.

While Wynn’s recent earnings showed strong results in Boston and Las Vegas weaker-than-expected VIP activity in Macau affected the overall outcome. Still, Baron remains positive about Macau’s long-term comeback, highlighting June’s double-digit year-over-year growth in gross gaming revenue after a slow start to the year. They think improving Chinese tourism and consumer spending could give a boost to Wynn’s properties there.

Baron also noted that Wynn’s collection of luxury resorts might attract buyers in the future, though he did not name any specific interested parties. Market rumors have connected possible offers to private equity firms or wealthy individual investors, but no one has made a real move yet.

In general, the company thinks Wynn’s stock could grow twofold in the next five years. They point to its high-end brand, its undervalued project in the UAE, and the potential comeback in Macau. Baron suggests that if these factors line up as predicted, investors might find a unique mix of growth, exclusivity, and strategic value in the gambling industry.