MGM Resorts (MGM) Has Liquidity to Absorb 16 Month Closure - Nomura/Instinet

Nomura/Instinet analyst Harry Curtis weighed in on MGM Resorts (NYSE: MGM) after the company announced it will close its resort operations domestically amid the COVID-19 outbreak. The analyst said while painful, MGM has the liquidity to absorb the expense for roughly 16 months.

"In suspending its resort operations domestically, MGM joins other major resort operators such as Disney, in using extreme social distancing measures to stop the spread of COVID-19 sooner than later," the analyst commented. "The pain will be significant on employees and cash for two (+) months, but MGM has the liquidity to absorb the expense for roughly 16 months."

The firm reiterated a Buy rating and $30.00 price target on MGM.

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 $15.44 yesterday.

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