MGM Resorts (NYSE: MGM)‘s stock had its “neutral” rating reaffirmed by Zacks in a research note issued on Wednesday. They currently have a $11.00 price target on the stock.
Zacks’ analyst wrote, “We believe MGM Resorts is ideally positioned to take advantage of both domestic and international opportunities and is executing its business strategy well. Moreover, the acquisition of a controlling interest in MGM China will strengthen its position in Macau and ensure higher profitability. Business at Las Vegas has begun to stabilize. Remodels at Bellagio and MGM Grand will likely drive the pricing power in 2012. The company’s convention business will face an easy comparison in second-quarter 2012. However, underperformance at CityCenter in Las Vegas, heavy reliance on debt financing, stiff competition and expected decline in market share in Macau due to increase in supplies make us cautious. Hence, we maintain our Neutral rating on the stock.”
Several other analysts have also recently commented on the stock. Analysts at Macquarie upgraded shares of MGM Resorts from a “neutral” rating to an “outperform” rating in a research note to investors on Friday, June 1st. Separately, analysts at Brean Murray reiterated a “buy” rating on shares of MGM Resorts in a research note to investors on Friday, May 4th. Finally, analysts at UBS AG (NYSE: UBS) reiterated a “neutral” rating on shares of MGM Resorts in a research note to investors on Friday, May 4th.
Shares of MGM Resorts traded up 2.98% during mid-day trading on Wednesday, hitting $11.245. MGM Resorts has a 52 week low of $7.40 and a 52 week high of $16.05. The company has a market cap of $5.498 billion and a P/E ratio of 2.02.
MGM Resorts last announced its earnings results on Thursday, May 3rd. The company reported ($0.44) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.15) by $0.29. The company’s revenue for the quarter was up 52.0% on a year-over-year basis. On average, analysts predict that MGM Resorts will post $-0.12 earnings per share next quarter.
MGM Resorts International is a holding company. The Company is a hospitality company. Its primary business is the ownership and operation of casino resorts, which includes offering gaming, hotel, convention, dining, entertainment, retail and other resort amenities.
