MGM Pullback Creates 'Long-Term Opportunity,' Stifel Says
Shares of MGM Resorts (NYSE: MGM) are down 1.1 percent to $24.58 in the face of bullish comments from Stifel.
Analyst Steven Wieczynski believes the pullback off the $28.75 high last month “creates long term opportunity” for investors.
The pullback was due in part in to a market-wide selloff in growth-oriented names and pressure “as a result of investors using weekly Macau GGR statistics to reach longer-term growth conclusions for the market.”
Wieczynski remained constructive on MGM because:
- ”Current valuation gap to Macau-centric operators should narrow as 1H16 Cotai opening draws nearer.”
- ”Strong group/convention booking outlook bodes well for the balance of 2014.”
- ”Regional development projects further enhance the long-term EBITDA growth outlook.”
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