Lowering Uncertainty Rating to High for Las Vegas Sands and Wynn on Improved Macao Demand Visibility

We are lowering our Uncertainty Rating to High from Very High for narrow-moat companies Wynn Resorts and Las Vegas Sands, driven by a rapid easing of Macao's COVID-19 policy over the past month, which we think is likely to endure. We have improved certainty around our existing base-case assumption that industry gross gaming revenue can rebound to 50% of 2019’s level this year versus a midteens level in 2022. We maintain our fair value estimates of $49 for Sands and $107 for Wynn, leaving the latter undervalued, in our view.