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MGM Resorts management to meet with UBS
Meeting to be held in New York on November 19 hosted by UBS.
MGM Growth assumed with a Hold at SunTrust
SunTrust analyst Barry Jonas assumed MGM Growth (MGP) with a Hold rating and a price target of $30 as part of his broader "U.S. Gaming" coverage transfer research report. The analyst says the company's assets are some of the "highest quality" in the group with "strong coverage and growth pipeline", adding that MGM's (MGM) goal of selling down its stake should also improve its corporate governance concerns. Jonas warns about the company's falling rent coverage in the volatile Las Vegas strip, as well as "upcoming competitive threats in MA and CT" and contends that MGM Growth valuation is fair.
JPMorgan sees 40% upside in shares of MGM Resorts
JPMorgan analyst Joseph Greff says MGM Resorts' Las Vegas Strip EBITDA results in Q3, which he says is the primary driver investor sentiment and the valuation multiple, beat Consensus by 5% on stronger than anticipated top line and margin performance. The analyst believes MGM's guidance continues to not be aggressive, investor expectations are low and that the stock's valuation is "cheap." Using a sum-of-the-parts valuation approach on 2019 estimates, and "below peer valuation multiples," Greff arrives at a target equity value of $35, implying 40% upside from current levels. He keeps an Overweight rating on MGM Resorts following the Q3 report.
Wynn Resorts price target lowered to $140 from $210 at Roth Capital
Roth Capital analyst David Bain lowered his price target for Wynn Resorts (WYNN) to $140 from $210 as he believes Q4 Macau EBITDA guidance of between $304M-$340M versus $400M consensus exposes VIP/high-end play volatility in Macau and downside risks in the current China economy. While Wynn is the most exposed to VIP weakness in Macau, the analyst believes commentary stops the small momentum other Macau names were beginning to build since Las Vegas Sands (LVS) and MGM Resorts (MGM) reported earnings. He reiterates a Buy rating on Wynn's shares.
MGM Resorts initiated with a Market Perform at Bernstein
Bernstein analyst Vitaly Umansky started MGM Resorts with a Market Perform rating and $28 price target. The analyst notes that over the last five years, gaming stocks have gone through periods of significant underperformance, followed by significant outperformance. The last six months have been exceptionally difficult for gaming stocks as Macau growth has begun to decelerate following nearly two years of strong growth and Las Vegas has seen unexpected near-term softness, he contends. However, Umansky argues that the gaming space has shown that if investors pick the right market, the right company, at the right time, outsized returns are possible.
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