Nomura Securities maintains a 'Buy' on MGM Resorts (MGM); Themes From Mgmt Meeting
Tweet
Share
E-mailGet Alerts MGM Hot Sheet
Price: $44.10 +0.07%
Rating Summary:
23 Buy, 15 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
23 Buy, 15 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Nomura Securities maintains a 'Buy' on MGM Resorts (NYSE: MGM) price target of $16.00.
Analyst, Harry C. Curtis, said, "Key Themes from Our Meeting with MGM’s management were: 1) Las Vegas - Our pricing note today shows Q1 pricing weakness in the mid-tier properties due to a strong convention calendar in 1Q’11, but overall RevPAR of +5% is driven by smaller group pricing that is less visible. 2) Macau - We expect higher VIP revenues in 2012 from two sources: MGM opened its in-house direct VIP rooms in December; and MGM is renovating ~70k sq ft on the second floor for additional VIP rooms (the incremental VIP rooms are not in our estimates). 3) Internet Poker - Management is optimistic that a federal bill could be announced in the next few months, with a requirement that sites be linked to a land-based casino company. MGM is set to report Q4 results on February 22. The stock has been strong YTD (up 40% vs the S&P 500 up 7%). We are buyers, especially on weakness, given our long-term view that MGM’s stock price could reach $20 in 18-plus months."
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 $14.63 yesterday.
Analyst, Harry C. Curtis, said, "Key Themes from Our Meeting with MGM’s management were: 1) Las Vegas - Our pricing note today shows Q1 pricing weakness in the mid-tier properties due to a strong convention calendar in 1Q’11, but overall RevPAR of +5% is driven by smaller group pricing that is less visible. 2) Macau - We expect higher VIP revenues in 2012 from two sources: MGM opened its in-house direct VIP rooms in December; and MGM is renovating ~70k sq ft on the second floor for additional VIP rooms (the incremental VIP rooms are not in our estimates). 3) Internet Poker - Management is optimistic that a federal bill could be announced in the next few months, with a requirement that sites be linked to a land-based casino company. MGM is set to report Q4 results on February 22. The stock has been strong YTD (up 40% vs the S&P 500 up 7%). We are buyers, especially on weakness, given our long-term view that MGM’s stock price could reach $20 in 18-plus months."
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 $14.63 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Deere (DE) PT Lowered to $570 at JPMorgan Ahead of Earnings
- BofA Securities Resumes American Eagle Outfitters (AEO) at Underperform
- Powell Industries (POWL) PT Lowered to $235 at Cantor Fitzgerald
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Standard & Poor's, NomuraSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
