Ascendiant Capital Initiates Coverage on MGM Resorts at Buy

In a report published today Ascendiant Capital Markets Initiated Coverage on MGM Resorts (MGM) with a Buy rating and a 12 month price target of $33.


“Buy rating is based on our valuation metrics, improving Las Vegas environment, Cotai & Maryland projects for 2016, deleveraging of its balance sheet and other expansion opportunities globally in the out years” Ascendiant Capital said in a note to clients

“Valuation driven by blended DCF, EV/EBITDA & PMV valuation tools yield a $33.00 price target. As new projects (Cotai and Maryland) draw closer, expect further valuation expansion. We do not see $33.00 as a terminal valuation target for MGM as financial dynamics and growth opportunities can provide a positive driver to the company’s valuation grid” it added

Shares of MGM Resorts (MGM) closed at $28.39 on Thursday.

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