Analyst: Buy MGM After Wynn Update

Sterne Agee analyst David Bain said "buy" MGM Resorts International

on weakness due to Wynn update. Casino stocks were trading mostly lower Wednesday morning after Wynn Resorts, Limited

announced a weak preliminary first-quarter results. "To the extent MGM weakness due to Wynn Las Vegas miss, 'We would Buy MGM"" Bain told Benzinga. Bain, who has a Buy rating and $28 price target on MGM, has stated before that Wynn Rev/Par and other metrics not good read through for MGM, which captures different demographic. Wynn Resorts reported preliminary first-quarter revenue from its operations in Macau to be $603 million to $613 million – marking a decrease from the $705.4 million it reported a year ago. The company expects its adjusted EBITDA for the region to be in a range of $187 million to $195 million, also marking a decrease from the $212.3 million it earned a year ago. Read more: http://www.benzinga.com/news/16/04/7808843/disappointing-guidance-out-of-wynn-weighing-on-casino-stocks#ixzz454JfGqRv Commenting on today's analyst day, Bain, in a client note, said: "Last night's release of certain metrics allows for a deeper discussion of 1Q later today, which should be modestly helpful for shares as we believe the Company will showcase attained operational efficiencies at Wynn Macau during 1Q, and suggest they are sustainable." "WYNN is also likely to give a more definitive opening timeline for Wynn Palace (allaying any remaining fears of a lengthy opening delay), speak more in-depth to a potential reconfiguration of Wynn Las Vegas to maximize EBITDA, and highlight the value proposition for its Massachusetts property," Bain wrote. Shares of Wynn fell 2.09 percent to $89.02, and MGM Resorts slipped 0.42 percent to $21.18.