NEW YORK (TheStreet) -- Shares of Wynn Resorts are slipping, down 1.77% to $139.51 in pre-market trading Wednesday, after the casino resort company had its rating lowered to "neutral" from "buy" by analysts at Nomura this morning. Analysts at the firm also lowered its price target to $149 from $209. Nomura said the downgrade and the cut in price target reflects lower Macau EBITDA forecasts following Beijing's tightening and enforcing of travel and capital flow regulations. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Chinese President Xi Jinping's efforts in an on-going anti-corruption drive along with weaker economic growth means casinos could see lower revenue in the Macau region until mid-2015, when new resorts open, according to Bloomberg. Macau is the only Chinese city where casino gambling is legal. Las Vegas-based Wynn Resorts is a developer, owner and operator of destination casino resorts with two segments: Las Vegas and Macau operations. Separately, TheStreet Ratings team rates WYNN RESORTS LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate WYNN RESORTS LTD (WYNN) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, expanding profit margins, good cash flow from operations, notable return on equity and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: WYNN RESORTS LTD has improved earnings per share by 5.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WYNN RESORTS LTD increased its bottom line by earning $7.17 versus $4.81 in the prior year. This year, the market expects an improvement in earnings ($7.83 versus $7.17). 40.25% is the gross profit margin for WYNN RESORTS LTD which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.97% is above that of the industry average. Net operating cash flow has slightly increased to $396.04 million or 6.88% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -18.32%. Regardless of the drop in revenue, the company managed to outperform against the industry average of 9.6%. Since the same quarter one year prior, revenues slightly dropped by 1.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share. The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Hotels, Restaurants & Leisure industry average. The net income increased by 5.2% when compared to the same quarter one year prior, going from $182.02 million to $191.41 million. You can view the full analysis from the report here: WYNN Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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