UPDATE: Credit Suisse Starts MGM Resorts (MGM) at Neutral

(updating comment)

Credit Suisse analyst Ben Combes initiates coverage on MGM Resorts (NYSE: MGM) with a Neutral rating and a price target of $15.00.

The analyst comments "We are Neutral rated on MGM given on our view of a slower recovery in Las Vegas. This position is based on its leverage to (1) fly-to guests whom we think may be slower to take long-haul flights, (2) new supply growth to Las Vegas, an area which for almost the last decade has experienced limited new capacity, and (3) leverage to corporate meetings/events which we think will operate on a lag due to both sales/planning and corporate earnings deceleration. A strong liquidity position ($6bn in cash) and ability to raise more capital (e.g., $0.7bn from MGP units) de-risks the story, however 2021 is likely not a bounce back year. While we expect robust growth in Macau in 2021, increased supply in Cotai, including a $5bn property opening near MGM Cotai (run by the Ho family) adds risk to the story."

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 $16.15 yesterday.

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