Wells Fargo Resumes Coverage on MGM Mirage (MGM) at Outperform; Improving Las Vegas Trends, Deleverage, Attractive Entry Point

Wells Fargo resumes coverage on MGM Mirage (NYSE: MGM) with a Outperform. PT range $10-$12.70.

Wells analyst says, "While the domestic economy could be softening, we believe much of that is already discounted into the stock. Las Vegas trends remain strong. With limited supply growth for the next 5-10 years, we believe results will improve, even with weaker economic growth, given the favorable supply dynamics. MGM China continues to generate material free cash flow, which we expect to be used to deleverage MGM. With MGM trading at 10.4x 2012 estimated net EBITDA of $1.979B, which is 1.4% ahead of the consensus, we believe this is an attractive entry point."

For an analyst ratings summary and ratings history on MGM Mirage click here. For more ratings news on MGM Mirage click here.

Shares of MGM Mirage closed at $9.89 yesterday.

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