Sterne Agee Raises PT on MGM (MGM) after Q4, Keeps Neutral as Strip Momentum Stalls
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Price: $15.34 +0.52%
Rating Summary:
14 Buy, 13 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
14 Buy, 13 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade MGM Now!
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, with a 52 week range of $8.83-$14.85.
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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, with a 52 week range of $8.83-$14.85.
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