Sterne Agee Raises Estimates On MGM

Sterne Agee is raising its 4Q10, CY11 and CY12 estimates for MGM Resorts International (NYSE: MGM).

“However, we note that our estimates project little negative impact from the aforementioned Cosmo opening or potential impact from rising gas prices, key risks in our view,” Sterne Agee writes.

“Our 4Q10 adjusted EBITDA moves to $307.7 million from $268.4 million, and is now higher than consensus EBITDA of $289.4 million. Our new 4Q10 forecast also represents MGM's first quarter since 4Q09 when its interest expense does not exceed adjusted EBITDA. Our 4Q10 adjustments are mostly a result of higher assumptions from the Company's Macau JV as well as our raised outlook for its Las Vegas Strip properties.”

MGM Resorts International currently trades at $15.01.