UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on MGM Resorts International Following 1Q14 Results, 2Q14 Guidance

In a report published Wednesday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on

, and raised the price target from $25.00 to $29.00. In the report, Deutsche Bank noted, “We view 1Q14 results and 2Q14 RevPAR guidance as true signals of change in the MGM business as the convention calendar mix benefit in the 1Q14 flowed through to EBITDA and proved to be more than a one trick pony as 2Q RevPAR guidance more closely aligns with broader lodging trends. Accordingly, our estimates are higher, as is our PT. While VIP concerns remain in Macau, MGM reinforced the bullish mass growth story at the property, something we anticipate will be more and more pronounced by industry management teams as VIP concerns linger. Our PT goes to $29 from $25, though we are maintaining our Hold rating given a balanced risk-reward here in our view.” MGM Resorts International closed on Tuesday at $24.98.