Sterne Agee Raises PT on MGM (MGM) after Q4, Keeps Neutral as Strip Momentum Stalls
Tweet
Share
E-mailGet Alerts MGM Hot Sheet
Price: $42.04 +0.02%
Rating Summary:
28 Buy, 10 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Rating Summary:
28 Buy, 10 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Join SI Premium – FREE
Sterne Agee raised its price target onMGM Resorts (NYSE: MGM) from $12 to $13.50 following Q4 results but maintained a Neutral rating.
Analyst David Bain comments, "4Q12 in-line results a bit better than muted investor expectations, though 1Q13 guide calling for flat Rev/PAR uninspiring, in our view. What we like – 1) Signs of slot handle improvement (read-through for FIT Leisure customers, the crux of MGM); 2) continuing balance sheet improvements; 3) solid domestic and significant Cotai expansion opportunities; and 4) improved flow-through. However, we believe for shares to move significantly higher, more evidence for a true Strip recovery is needed."
The firm's CY13/CY14 EBITDA goes to $1.99b/$2.11b from $1.97b/$2.09b, reflecting lesser Rev/PAR assumptions on the Strip but stronger flow through assumptions. CY13/CY14 EPS goes to ($0.24)/($0.08) from ($0.53)/($0.22) mostly as a result of lower interest assumptions and an adjustments to other non-operating expenses.
For an analyst ratings summary and ratings history on MGM Resorts click here. For more ratings news on MGM Resorts click here.
Shares of MGM Resorts closed at $12.54 yesterday.
Analyst David Bain comments, "4Q12 in-line results a bit better than muted investor expectations, though 1Q13 guide calling for flat Rev/PAR uninspiring, in our view. What we like – 1) Signs of slot handle improvement (read-through for FIT Leisure customers, the crux of MGM); 2) continuing balance sheet improvements; 3) solid domestic and significant Cotai expansion opportunities; and 4) improved flow-through. However, we believe for shares to move significantly higher, more evidence for a true Strip recovery is needed."
The firm's CY13/CY14 EBITDA goes to $1.99b/$2.11b from $1.97b/$2.09b, reflecting lesser Rev/PAR assumptions on the Strip but stronger flow through assumptions. CY13/CY14 EPS goes to ($0.24)/($0.08) from ($0.53)/($0.22) mostly as a result of lower interest assumptions and an adjustments to other non-operating expenses.
For an analyst ratings summary and ratings history on MGM Resorts click here. For more ratings news on MGM Resorts click here.
Shares of MGM Resorts closed at $12.54 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Cleveland Research Upgrades Dynatrace Inc. (DT) to Buy, 'optimism underlying fundamentals are likely to support upside'
- Marsh & McLennan (MMC) PT Raised to $221 at Evercore ISI
- Glenmark Pharmaceuticals Ltd. (GNP:IN) PT Raised to INR1,220 at HSBC
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
Sterne AgeeSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
