MGM To Perform Well (MGM)
March 10, 2010 8:35 PM
Equity research firm Sterne Agee & Leach has given a positive outlook for MGM Mirage (NYSE: MGM). However, the research firm has slightly downgraded its outlook for the next two quarters.
MGM has strong group bookings numbers for 2011. These numbers are as high as 70% and are at rates which are higher than the peak levels. MGM Mirage is likely to increase its EBITDA by $300 million in 2011. Any improvement in the employment level is also expected to boost MGM’s business travel segment. The price target for the company has been set at $10.
"When you look at that (current) footprint, by and large, we are where we need to be," CEO Zimpleman said. "Our challenge is to go deeper into those markets, rather than to stretch our management beyond the footprint we have today."
