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Time to Bet on Wynn?

After dropping more than 30 percent over the past four months, Wynn Resorts is now a ‘buy’ KeyBanc Capital Markets’ Dennis Forst told the “Fast Money” team Monday.

Forst noted that the company will benefit from continued strength in Macau and the ongoing recovery of the Las Vegas gambling market.

“When you put in the terrific balance sheet that Wynn’s got, the secular growth in both Macau—where they get over 70 percent of their cash flow—and Las Vegas, [and] a dividend yield that is over 6 percent—including the special this year, we think it's a pretty compelling valuation,” he said.

OptionMonster’s Pete Najarian agrees.

“I still like this stock. I like it at these levels,” he said. “I think there is plenty of upside here.”

Forst said he wasn’t concerned about any risk to the downside in Macau because he thinks that is already factored into the price of the stock.

“If there is a global recession of some length of time and it impacts Chinese exporting and manufacturing, that is one of the risks,” he said. “But we are comfortable with the valuation reflecting that and we don’t think that’s going to happen.”

And while gambling has yet to come back in Las Vegas, there have been encouraging signs, Forst said. He noted the foot traffic, hotel occupancy and room rates are all moving in the right direction.

(Related: Wynn Resorts rises as analyst lifts rating)

Plus, the amount of coin put into slot machines on the Las Vegas strip has been up six months in a row.

“That is the first time in over four years that we have seen any uptrend in slot business,” Forst said. “We are figuring that is another positive sign.”

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Trader disclosure: On Nov 28, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Weiss Long EUO; Weiss Long QCOM; Weiss Long NFLX puts; Weiss Long HPQ stock; Weiss Long DE Stock; Weiss Long MDRX stock

For Pete Najarian
Najarian Long AAPL Stock; Najarian Long AKS Calls; Najarian Long C stock; Najarian Long JPM Calls; Najarian Long WFC Calls; Najarian Long INTC stock; Najarian Long YHOO Stock

For Steve Grasso
Long Retailers in Retail Based Hedge Fund
Has positions in AA, AKS, AMR, ASTM, BA, BAC, D, LIT, MHY, PFE, PRST, S, XLU

For Dick Bove
* No Disclosures

For Kimberly Greenberger
Morgan Stanley managed or co-managed public offering in EXPR
Morgan Stanley received compensation for investment banking services from EXPR, LTD,
Morgan Stanley expects to received or seek compensation for products from ANF
Morgan Stanley & Co. LLC makes a market in the securities of Abercrombie & Fitch Co., Aeropostale Inc, American Eagle Outfitters, Inc., AnnTaylor Stores Corp, Chico's FAS Inc., Children's Place Retail Stores Inc., Coach Inc, Express, Inc., Gap Inc, Guess, Limited Brands Inc, Lululemon Athletica Inc., Ross Stores Inc., Skullcandy Inc, Teavana Holdings, Inc., Tiffany & Co., TJX Companies Inc., Urban Outfitters Inc..
Morgan Stanley & Co. International PLC and its affiliates have a significant financial interest in the debt securities of Limited Brands Inc, TJX Companies Inc..

For Jeff Kilburg
* No Disclosures

For Vasily Karasyov
SFG is a market maker in the securities of AMC Networks, Inc. (AMCX), Walt Disney Co. (DIS), Discovery Communications, Inc. (DISCA), DreamWorks Animation SKG Inc. (DWA), Madison Square Garden, Inc. (MSG), Netflix, Inc. (NFLX), News Corp. (NWSA), Time Warner Inc. (TWX), and Viacom, Inc. (VIA/B).
SFG and/or its affiliates beneficially own 1% or more of the securities of Netflix, Inc. (NFLX).

For Neil Doshi
-Firm has received compensation for products and services other than investment banking from ERTS
-ERTS has been a non-investment banking client of Citgroup Global markets over the past 12 months

For Dennis Forst
Firm makes market in WYNN Securities
Expects to receive or seek compensation for investment banking from WYNN

CNBC.com with wires.

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