Nomura/Instinet analyst, Harry Curtis, reiterated his Buy rating on shares of MGM Resorts (NYSE: MGM) but cut his price target to $38 from $39 after the company set a low bar for RevPAR bogey in 2H18 by taking out ~500-600bps of RevPAR and ~200-300bps of LV EBITDA margin from consensus expectations.

The analyst stated "MGM’s stock may have found a floor due to its conservative guide". "The ~400bps RevPAR reduction in its full-year outlook (from up 1-3% to down low-single digit) lowers EBITDA by ~$150mn in 2H18E and by $130mn next year. We expect the RevPAR bogey to settle at ~3% for 4Q18. In our view, both MGM and CZR need to be more proactive in increasing the mix of midweek group business to offset slack leisure demand". Despite the cut in PT the target still implies more than 30% upside.

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 $28.97 yesterday.