Lebenthal buys more shares of Wynn after the stock slipped 13% on Tuesday

U.S. casinos with operations in Macau are taking a hit in the stock market this morning on stiffer regulations and a new wave of the Coronavirus in the region.

Shares of Wynn Resorts Limited (NASDAQ: WYNN) are down about 13% today, but Cerity Partners’ Jim Lebenthal only saw it as an opportunity to add to his long position in WYNN.

Highlights from Lebenthal’s interview with CNBC

Lebenthal originally hopped onto the stock last week. Defending his stance on CNBC’s “Halftime Report”, he said Macau was not the primary source of earnings for Wynn.

He expects the company’s digital segment, Wynn Interactive, to be a notable driver of growth in the future. Earlier this year in May, Wynn Resorts said it will spin off this mobile gaming and sportsbook business into an independent, publicly-traded company via a SPAC merger with Bill Foley’s Austerlitz Acquisition Corporation I.

Lebenthal acknowledged that WYNN was a risky trade considering the ongoing Chinese crackdown but said:

Hightower’s Stephanie Link agrees

During the same interview, Hightower’s Stephanie Link, who also owns the stock, agreed with Lebenthal’s thesis and said she would also buy more, when she can.

Peer Las Vegas Sands is also down about 13% on Tuesday.