Merrill's Bearish Report on MGM Weighing on Casino Stocks (MGM, LVS, WYNN)
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Price: $43.45 +0.65%
Rating Summary:
23 Buy, 15 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
23 Buy, 15 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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A bearish report from Merrill Lynch on MGM MIRAGE (NYSE: MGM) has pushed down the two other major casino names, Las Vegas Sands (NYSE: LVS) and Wynn Resorts (Nasdaq: WYNN) today.
The firm lowered its investment rating on MGM from Buy to Neutral, also cutting its price target from $11 to $8. Merrill believes that the casino's focus on "an increasingly aggressive strategy toward booking group business" over the next few years will delay MGM's earnings snap-back.
With shares of MGM down 7% to $6.96 today, Merrill's lowered price target represents potential upside of about 15% from current levels.
Elsewhere in the sector, shares of Las Vegas Sands are down 4.2% to $10.52 and Wynn shares are down 4.9% to $44.33. Notably, MGM, Las Vegas Sands and Wynn are all seeing slightly heavier-than-normal trading volume today.
The firm lowered its investment rating on MGM from Buy to Neutral, also cutting its price target from $11 to $8. Merrill believes that the casino's focus on "an increasingly aggressive strategy toward booking group business" over the next few years will delay MGM's earnings snap-back.
With shares of MGM down 7% to $6.96 today, Merrill's lowered price target represents potential upside of about 15% from current levels.
Elsewhere in the sector, shares of Las Vegas Sands are down 4.2% to $10.52 and Wynn shares are down 4.9% to $44.33. Notably, MGM, Las Vegas Sands and Wynn are all seeing slightly heavier-than-normal trading volume today.
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