MGM Well Positioned For Las Vegas Rebound
Analysts at Goldman Sachs upgrade MGM Mirage (NYSE: MGM) from "neutral" to "buy." The target price for MGM has been raised from $10 to $16.
According to Goldman Sachs, MGM Mirage is expected to benefit significantly from the improving trends in Las Vegas over the next several quarters. The analysts believe that there will be an improvement in attendance in Las Vegas. Moreover, MGM is expected to strengthen its balance sheet with a debt issuance, credit line extension, or a capital raise from one of its joint ventures, the analysts add.
MGM has significant leverage for a Las Vegas recovery, as it has 40,000 strip rooms and approximately 27% market share, the analysts mention. MGM is likely to get back to its robust growth mode by 2012, according to Goldman Sachs.
