MGM Resorts International Stock Rating Upgraded by Bank of America Corp. (MGM)
MGM Resorts International (NYSE:MGM) was upgraded by investment analysts at Bank of America Corp. from a “neutral” rating to a “buy” rating in a note issued to investors on Monday, American Banking and Market News reports. The firm currently has a $33.50 price objective on the stock, up from their previous price objective of $21.00. Bank of America Corp.’s price target would indicate a potential upside of 32.67% from the company’s current price.
The analysts wrote, “MGM still generates ~70% of adj. EBITDA from Las Vegas,” the report noted. “We are increasingly bullish on the U.S. and West Coast hotel cycle and believe this will spill over to MGM. MGM is highly sensitive to improvements in hotel fundamentals and with RevPAR and EBITDA still 18% and 35% below prior peak, there is plenty of recovery capacity ahead. Every $5 increase in hotel rates boosts EBITDA by $50M.”
Shares of MGM Resorts International (NYSE:MGM) traded down 0.43% during mid-day trading on Monday, hitting $25.25. The stock had a trading volume of 18,590,328 shares. MGM Resorts International has a 1-year low of $11.72 and a 1-year high of $26.11. The stock’s 50-day moving average is $21.96 and its 200-day moving average is $19.1. The company’s market cap is $12.374 billion.
MGM Resorts International (NYSE:MGM) last issued its quarterly earnings data on Thursday, October 31st. The company reported ($0.07) earnings per share for the quarter, missing the analysts’ consensus estimate of ($0.03) by $0.04. The company had revenue of $2.50 billion for the quarter, compared to the consensus estimate of $2.42 billion. During the same quarter last year, the company posted ($0.37) earnings per share. MGM Resorts International’s revenue was up 9.3% compared to the same quarter last year. Analysts expect that MGM Resorts International will post $-0.23 EPS for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Argus raised their price target on shares of MGM Resorts International from $24.00 to $29.00 in a research note to investors on Friday. They now have a “buy” rating on the stock. Separately, analysts at FBR Capital Markets raised their price target on shares of MGM Resorts International from $25.00 to $30.00 in a research note to investors on Friday. They now have an “outperform” rating on the stock. Finally, analysts at Nomura reiterated a “buy” rating on shares of MGM Resorts International in a research note to investors on Tuesday, January 7th. They now have a $23.00 price target on the stock, down previously from $28.00. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and nineteen have assigned a buy rating to the company. The stock presently has an average rating of “Buy” and an average target price of $25.13.
MGM Resorts International is a holding company. The Company is a hospitality company. The Company’s primary business is the ownership and operation of casino resorts, which includes offering gaming, hotel, convention, dining, entertainment, retail and other resort amenities.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.