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Janney Capital Remains Bullish on MGM Resorts (MGM) With a Positive Las Vegas Outlook

February 22, 2016 1:07 PM EST
Get Alerts MGM Hot Sheet
Price: $47.36 +1.63%

Rating Summary:
    27 Buy, 10 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Janney Capital maintained a Buy rating on MGM Resorts (NYSE: MGM), and cut the price target to $25.00 (from $28.00), with a positive outlook for Las Vegas. In Las Vegas, the company grew revenue 2% and EBITDA 14%. Janney thinks it was a positive that EBITDA margin increased 280 bps YoY to 27.1%, and expects further margin expansion can come from ADR led RevPAR growth and the announced profit growth plan.

Analyst Brian McGill commented, "We maintain our BUY on MGM because we have a positive outlook for Las Vegas. We believe it continues to evolve away from a destination dependent on gambling and more towards one driven by non-gaming amenities, events and conventions. We also believe MGM has several other projects that are often overlooked by investors and it continues to move forward with its plans to create a REIT. On the downside, Macau remains a struggle. Our fair value moves to $25 (from $28), which is 10.5x our 2016 EBITDA plus $5 for other projects."

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 $18.06 yesterday.



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