UPDATE - Deutsche Bank Initiates Coverage on MGM Resorts (MGM) with a Buy; Strip Recovery + Recent Pullback = Attractive Opportunity
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Price: $42.97 -0.46%
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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UPDATE - Deutsche Bank initiates coverage on MGM Resorts (NYSE: MGM) with a Buy rating and $17 price target.
Deutsche analyst, said, "Given the macro related pullback in shares, our views on the Strip recovery process, and our belief in MGM’s ability to convert even modest top line Strip growth into strong EBITDA growth leaves us believing the risk/reward in MGM shares is favorably skewed. Additionally, given a far more lenient maturity schedule and considerably more capital flexibility, we think the risk of significant credit related issues putting a meaningful drag on equity value are remote."
"We expect shares to benefit from: 1) the ongoing recovery on the Las Vegas Strip that should provide upside to estimates if historical recovery patterns hold firm, 2) a streamlined cost structure in Las Vegas which should promote significant operating leverage in a Strip recovery, 3) a steep growth trajectory in Macau, with room for upside, 4) an improved capital structure which provides added financial flexibility, and 5) a firm base of convention demand to support out year RevPAR."
To see more ratings on MGM, Click Here
Deutsche analyst, said, "Given the macro related pullback in shares, our views on the Strip recovery process, and our belief in MGM’s ability to convert even modest top line Strip growth into strong EBITDA growth leaves us believing the risk/reward in MGM shares is favorably skewed. Additionally, given a far more lenient maturity schedule and considerably more capital flexibility, we think the risk of significant credit related issues putting a meaningful drag on equity value are remote."
"We expect shares to benefit from: 1) the ongoing recovery on the Las Vegas Strip that should provide upside to estimates if historical recovery patterns hold firm, 2) a streamlined cost structure in Las Vegas which should promote significant operating leverage in a Strip recovery, 3) a steep growth trajectory in Macau, with room for upside, 4) an improved capital structure which provides added financial flexibility, and 5) a firm base of convention demand to support out year RevPAR."
To see more ratings on MGM, Click Here
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