MGM Still Has Room To Run, Stifel Says

Stifel Nicolaus' analyst Steven Wieczynski boosted his price target on shares of MGM Resorts International MGM Thursday, ahead of the company's first-ever Investor Day. The analyst moved his price target from $27 to $30 and reiterated a Buy rating.

Wieczynski believes the Investor Day will be a positive catalyst for MGM.

"[W]e believe management will highlight three embedded value creation opportunities at its disposal," Wieczynski said. He highlighted:

1. The potential to pursue incremental strategic real estate transactions (both MGP and asset sales) designed to have the current market value of MGM’s real estate holdings more accurately reflected in the trading multiple;
2. A sustainable Strip cash flow growth opportunity, aided by implementation of the $300M PGP and continued improvement in group/convention and non-gaming fundamentals; and,
3. Future cash flow growth potential resulting from the completion of the company’s multi-faceted and geographically diverse development portfolio."

Shares of MGM closed at $25.09 Thursday, up about a half percent from Wednesday's closing price.