HSBC Global Research has upgraded Wynn Macau (HKG:1128) from "Neutral" to "Overweight" and raised the stock's price target from HK$26.18 to HK$32.68.

HSBC has upgraded its 2011 and 2012 forecasts for Wynn Macau by 8.4% and 10% respectively due to better performance in VIP and mass gaming.

Uncertainty remains regarding the timing of the Wynn Cotai project, HSBC says. HSBC continues to heavily discount this potential project by 60% in its valuation. If an approval were received, HSBC's target price would likely increase by 20%.

HSBC believes that Wynn Macau offers good earnings growth, with compound annual growth rate of 24% expected for 2011-2015.