MGM Mirage (MGM) Cut to Sell (Finally)

Merrill locks the barn door after the horse is gone and cuts MGM Mirage (MGM) to UNDERPERFORM with a target of $24. Merrill cites 3 main factors for the late change of heart:

  • increased uncertainty in the company’s ability to secure low cost financing for its CityCenter project (a 16,797,000 square feet mixed-use complex on 76 acres currently under construction by MGM on the Vegas strip)
  • decreased visibility into 2H08 and 2009 demand trends (which are not looking on the up and up)
  • reduced possibility that billionaire Kirk Kerkorian or Dubai World will buy the company

Merrill downgrades MGM Mirage (MGM) from Neutral to UNDERPERFORM, target cut from $52 to $24.

See Also:
MGM Mirage (MGM): Stock Oversold And Might Get More So
Gambling Fears Overblown: Las Vegas Sands (LVS), MGM (MGM), and Wynn Resorts (WYNN) Could Double

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