Nomura Securities Maintains a 'Buy' on MGM Resorts (MGM); Q4 Review; Results Support Positive Thesis
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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: 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
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Nomura Securities maintains a 'Buy' on MGM Resorts (NYSE: MGM) price target of $16.00.
Analyst, Harry Curtis, said, "Key themes from the Q4 call: 1) Despite MGM issuing Q1 12 Strip RevPAR guidance of 2-3%, we highlight MGM’s full-year RevPAR guidance of mid-to-high single-digit growth or up 7-9% for the balance of 2012. 2) 62% of MGM’s credit facility will be extended by a year to Feb 2015 (ie, ~$2.2bn out of $3.5bn) at ~150bp lower rate, which equates to $33mn in annual interest expense savings. 3) Expect growth in Macau and the possibility of a second special dividend in 2012. We maintain our wholly-owned Strip EBITDA estimate of $1.3bn in 2013 and $1.57bn in 2013. No change to Macau 2012EBITDA of $680mn and $729mn in 2013. 2012E EBITDA goes from $2,186 to $2,134 and 2013E from $2,554 to $2,492. We reiterate our $16 PT and, again, our long-term view that the stock can reach $20 (ie, 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 $13.77 yesterday.
Analyst, Harry Curtis, said, "Key themes from the Q4 call: 1) Despite MGM issuing Q1 12 Strip RevPAR guidance of 2-3%, we highlight MGM’s full-year RevPAR guidance of mid-to-high single-digit growth or up 7-9% for the balance of 2012. 2) 62% of MGM’s credit facility will be extended by a year to Feb 2015 (ie, ~$2.2bn out of $3.5bn) at ~150bp lower rate, which equates to $33mn in annual interest expense savings. 3) Expect growth in Macau and the possibility of a second special dividend in 2012. We maintain our wholly-owned Strip EBITDA estimate of $1.3bn in 2013 and $1.57bn in 2013. No change to Macau 2012EBITDA of $680mn and $729mn in 2013. 2012E EBITDA goes from $2,186 to $2,134 and 2013E from $2,554 to $2,492. We reiterate our $16 PT and, again, our long-term view that the stock can reach $20 (ie, 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 $13.77 yesterday.
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