UPDATE: Morgan Stanley Downgrades MGM Resorts to Equal-Weight on Stalling Recovery

Morgan Stanley reduced its rating on MGM Resorts

from Overweight to Equal-weight and reduced its price target from $15 to $12. Morgan Stanley noted, "We believe the recent deceleration in leisure metrics in LV will persist through at least 2H12, delaying MGM's LV-recovery thesis and limiting upside. MGM's LT risk-reward remains favorable given the improved B/S, but the swing back to a group-led thesis in LV makes positive ST catalysts unlikely." MGM Resorts closed at $10.08 on Tuesday.