Shares of Wynn Resorts Ltd. rose the most in more than six weeks Wednesday after Macaubusiness.com said the owner of the Wynn and Encore casinos may sign a land contract for a proposed resort in Cotai, Macau, this month.
Wynn gained 4.9 percent to $130.85 at 3:02 p.m., after rising as much as 6.2 percent for the biggest jump since March 2. The shares had risen 13 percent this year before Wednesday.
Macaubusiness cited the Jornal Tribuna de Macau, which attributed the information to a source close the deal.
“If this is accurate, this should be viewed very favorably by investors since it plugs a unit growth/new development hole,” Joseph Greff, a JPMorgan Chase & Co. analyst, wrote in a research note today. Greff, who rates the Las Vegas-based casino operator overweight, said the deal could add as much $30 dollars a share to Wynn.
Michael Weaver, a Wynn spokesman, declined to comment.
Wynn is looking to build its second casino in Macau, the only place in China where gambling is allowed. The former Portuguese colony has become the largest gambling market in the world since it began granting new casino licenses in 2002 to companies, including Wynn. Wynn Macau opened in 2006.
Wynn shares jumped 4.3 percent March 2 after the company’s law firm accidentally released a statement saying the new project had been approved by Chinese authorities.
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