Nomura Securities Reiterates a 'Buy' on MGM Resorts (MGM); Resetting Expectations

Nomura Securities reiterates a 'Buy' on MGM Resorts (NYSE: MGM) price target of $16.00.

Analyst, Harry Curtis, said, "Resetting expectations on lower EBITDA, but strong group demand; still see 9% upside potential in 3-6 months, 40% upside potential in 12-18 months. We have reduced our Las Vegas EBITDA expectations mainly owing to more conservative margins, but we remain above consensus. However, group demand is building strongly in Las Vegas. We expect a 10% lift in group ADR in 2012, with even higher lift in 2013- 2014. This should drive the stock toward $20 in the next 12-18 months. To be clear, despite the EBITDA reduction, our 2012E EBITDA goes from $2,134 to $2,013 (vs. Street at $1,945) and 2013E from $2,492 to $2,373 (vs. Street at $2,149). MGM remains one of the few stocks in our universe with nearly 40% upside potential over a 12-18 month period."

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 $14.71 yesterday.

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