Stifel analyst Steven Wieczynski upgraded Wynn Resorts to Buy from Hold, as he believes the pullback in the stock recently has created a compelling opportunity.

While acknowledging his upgrade "might be a bit early" given difficult VIP comparisons through July, Wieczynski argues that tougher VIP comparisons are now baked into expectations and he would rather be early than late "given the volatility of swings in Macau related stocks."His long-term case to own Wynn shares is built on expectations for continued Macau share gains, a ramp in free cash flow in 2019, and the potential for margin expansion, the analyst tells investors.

Wieczynski also trimmed his price target on Wynn shares to $207 from $209.