UPDATE: Sterne Agee Reiterates MGM Resorts at Neutral, PT $13.50 on Las Vegas Capacity Expectations

In a report published Monday, Sterne Agee reiterated MGM Resorts

at neutral with a price target of $13.50 on expectations that Las Vegas capacity will increase. Sterne Agee reported that, “According to press reports, Genting Group is set to announce an agreement to purchase Echelon from Boyd (BYD, Neutral, $6.45) for under ~$400m or less than $4.6m an acre – a very reasonable price, in our view. We view the Genting's relatively low per-acre purchase price and a potential “early” restart of Echelon as unhelpful to existing operators with Strip exposure." MGM Resort's shares closed at $12.43 on Friday.