Jefferies Pounds the Table on MGM (MGM), Sees 80% Upside

September 14, 2011 8:16 AM EDT Send to a Friend
Get Alerts MGM Hot Sheet
Price: $18.01 -4.46%

Rating Summary:
    23 Buy, 7 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 24 | New: 30
Trade MGM Now!
Join SI Premium – FREE
Jefferies made positive comments on MGM Mirage (NYSE: MGM) today, reiterating its Buy rating and $19 price target following management meetings on 9/12-9/13.

The firm said that management reiterated that fundamentals in Las Vegas and Macau are improving despite recent shocks to the financial markets and macroeconomic expectations resetting. They also said that concerns over stability in the shareholder base are perhaps overblown.

Management has not seen changes in the positive 1st-half Las Vegas trends, including bookings and the event calendar for the remainder of the year and the setup for 2012, the firm notes.

In Macau, operations momentum continues and management believes recent news about movement in Wynn's (Nasdaq: WYNN) Cotai land deal could pave the way for MGM's and "bears surprisingly attractive cost." The firm said MGM's 51% interest is worth $8.40 per share, which they view as "conservative and implies a negligible value for Las Vegas and other operations."

The firm also said the company's M Life reward program could be bigger than most think and could be an "important tool for growth in the future."

Jefferies said worries over the stability among larger shareholders "could be overblown and creating a buying opportunity." The analyst said, "while some of the larger shareholders have traded the stock, we believe these trades have little to do with the fundamental outlook for the story."

For more ratings news on MGM Mirage click here and for the rating history of MGM Mirage click here.

Shares of MGM Mirage closed at $10.53 yesterday, suggesting 80 percent upside to the firm's $19 price target.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Hot Comments

Related Entities

Jefferies & Co

Add Your Comment