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Why Is Wynn Resorts (WYNN) Stock Soaring Today?

Steve Wynn has some ambitious plans for his Las Vegas properties. The billionaire chairman and CEO of Wynn Resorts Ltd. WYNN announced plans Wednesday to transform the golf course behind the company’s Vegas hotels and casinos into a 38-acre lagoon attraction.

As Wynn maneuvers to become the biggest player in the crucial Vegas market, investors are reacting positively. Shares of WYNN are up over 11% in morning trading Tuesday.

The project would also include a new 1,000 room hotel, a casino, restaurants, clubs, and a convention space. Although the development is still in its early stages, Wynn indicated that it could cost over $1.5 billion. The company’s board of directors will also need to vote on the plan.

The key thing about this project is that Wynn sees it as an entertainment attraction, similar to Disney DIS parks. While Vegas isn’t necessarily known as a family-friendly destination, this new lagoon would have a beach, a small island, and water attractions.

“This really does reinvent Las Vegas,” Wynn said in a statement to investors. “And I’m not a guy that does developer-speak very often — I let our projects talk for themselves.”

Shares of WYNN are also riding higher on other news. Earlier this week, the company announced preliminary earnings for the first quarter of fiscal 2016. Although Macau revenues are down, investors reacted positively to Wynn’s expected revenue from Vegas operations: between $384 million and $394 million compared to $386.9 million a year ago.

The stock also got a key analyst upgrade today. Telsey Advisory Group upgraded shares to “outperform” from “market perform.”

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