Nomura Securities Reiterates a 'Buy' on MGM (MGM); Diving Into Valuation
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Price: $44.10 +0.07%
Rating Summary:
23 Buy, 15 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 8
Rating Summary:
23 Buy, 15 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 8
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Nomura Securities reiterates a 'Buy' on MGM (NYSE: MGM), PT $19.
Nomura analyst, Harry Curtis, said, "The note takes a deeper dive into MGM’s valuation, in which we lay out why we think MGM’s domestic stub is valued much lower than investors realize. After backing out MGM’s share of Macau, CityCenter and Cotai, we believe MGM’s domestic stub is today valued at $3.90/share, or ~8x our 2012 wholly-owned domestic EBITDA estimate of $1.4b. Recovery EBITDA multiple is ~9.5x for Vegas. We also note that every 1x turn in MGM’s domestic EV/EBITDA multiple equates to ~$3/share of incremental value...In addition, the HK IPO of the Macau sub should put MGM’s parent’s stock in a favorable valuation light.
For more ratings news on MGM click here and for the rating history of MGM click here.
Shares of MGM closed at $14.55 yesterday.
Nomura analyst, Harry Curtis, said, "The note takes a deeper dive into MGM’s valuation, in which we lay out why we think MGM’s domestic stub is valued much lower than investors realize. After backing out MGM’s share of Macau, CityCenter and Cotai, we believe MGM’s domestic stub is today valued at $3.90/share, or ~8x our 2012 wholly-owned domestic EBITDA estimate of $1.4b. Recovery EBITDA multiple is ~9.5x for Vegas. We also note that every 1x turn in MGM’s domestic EV/EBITDA multiple equates to ~$3/share of incremental value...In addition, the HK IPO of the Macau sub should put MGM’s parent’s stock in a favorable valuation light.
For more ratings news on MGM click here and for the rating history of MGM click here.
Shares of MGM closed at $14.55 yesterday.
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