UPDATE: Cantor Fitzgerald Initiates Buy, $14 PT on MGM Resorts International on Entry Opportunity
Cantor Fitzgerald initiated its coverage on MGM Resorts International (NYSE: MGM) with a Buy rating and a price target of $14.
Cantor Fitzgerald noted, "We value MGM using a sum-of-the-parts methodology that applies 2013 EBITDA multiples of 9.0x to Las Vegas, 7.0x to regional operations, 12.0x to management operations, and 11.0x to Macau operations and royalties. This yields a $14 price target, which is 29% above current levels. MGM is a volatile stock that has spent two years trading between $10 and $15. We think this continues and see current levels as a good entry point."
MGM Resorts International closed at $10.50 on Monday.
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