MGM Resorts (MGM) PT, Estimates Raised at FBR on 'Strong' Q1

FBR Capital analyst Jake Fuller raised estimates and his price target on Outperform-rated MGM Resorts (NYSE: MGM) to $35.00 (from $30.00) following strong results and upbeat comments.

Fuller weighed in, "MGM Resorts (MGM) turned in a very strong 1Q, but we also heard very bullish call commentary that addressed several lingering questions. Highlights: (1) A double-digit booking pace for the Strip in 2015 yields confidence that a convention/group-led rebound continues and may be gaining steam; (2) Mass business in Macau is now 70% of property EBITDA and that should ease concern around a VIP slowdown; and (3) Strip EBITDA is still over $350 million below peak, suggesting a significant incremental opportunity with real plans in place to recapture that business. We are taking estimates up, increasing our price target to $35 (from $30), and remain a buyer of MGM."

The firm is raising 2014 ($2,532 million to $2,665 million) and 2015 ($2,673 million to $2,827 million) property EBITDA estimates.

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 $24.98 yesterday.

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