UPDATE: Deutsche Bank Downgrades MGM Resorts International to Hold on Risk/Reward

Deutsche Bank downgraded MGM Resorts International

from Buy to Hold and maintained a $13.00 price target. Deutsche Bank commented, "At current levels we see modest remaining upside and a fair, if not risk weighted, risk-reward scenario and hence we are downgrading to Hold from Buy. We see the potential for a near term catalyst with an MGM China dividend which furthers the MGM parent cash flow story, but see few fundamental reasons from here that drive shares meaningfully higher. Furthermore, we see 4Q12 earnings and what we believe are elevated Consensus estimates for Strip performance in 2013 as being potential headwinds for the stock. We do not believe the strong 1H13 group/convention business is enough to mitigate the broader issues that we expect to persist in 2013." MGM Resorts International closed at $12.98 on Monday.