Nomura Securities Reiterates a 'Buy' on MGM Mirage (MGM); See RevPAR Increase in Q2

Nomura Securities reiterates a 'Buy' on MGM Mirage (NYSE: MGM), PT $19.

Nomura analyst, Harry Curtis, said, "Based on our proprietary Las Vegas room rate survey, we believe MGM can achieve 3% YOY (excluding resort fees) RevPAR increase in Q2, with potential upside surprise of 100bp (which could add $3mn to EBITDA). Important to note is that May/June rates started down but picked up with each passing week. We believe this shorter booking window is likely to occur in Q3 as well. For MGM, we are looking for +1% (excl. resort fees) in Q3 RevPAR. MGM’s high-end properties continue to do well while the mid-tier properties are stable. There is potential upside to our estimate. The stock has oscillated since we initiated on 12/10. Now at the low end of the string, its current valuation is compelling at a blended (below average) multiple of ~10x our 2012 EBITDA."

For more ratings news on MGM Mirage click here and for the rating history of MGM Mirage click here.

Shares of MGM Mirage closed at $12.45 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Nomura/Instinet Upgrades Genting Singapore (GENS:SP) (GIGNY) to Neutral
• KinderCare Learning Companies (KLC) PT Lowered to $4.50 at UBS
• Freedom Broker Upgrades Lifeway Foods (LWAY) to Buy