Analyst raises MGM Resorts rating, price target on stock price, convention recovery

Analyst lifts MGM Resorts rating and price target

NEW YORK — MGM Resorts International’s attractive stock price and signs of a convention recovery led an analyst to raise the casino operator’s rating and price target, which sent its share up Wednesday.

THE SPARK: The Las Vegas-based company’s stock is down about 43 percent since April, according to Soleil Securities analyst Jake Fuller, who suspects the declining share price is partly due to the slower-than-expected recovery of the Las Vegas market and soft opening of MGM Resorts’ CityCenter complex there.

THE BIG PICTURE: MGM Resorts, like many casino operators, is waiting for domestic casino business to return. Gamblers pulled back on their spending as the recession wore on, and with economic conditions still soft, many have yet to return to their previous spending ways. This has hurt big U.S. gambling markets like Las Vegas, which relies on vacationers and business travelers to spend on its games, lodging, food and entertainment.

THE ANALYSIS: Fuller sees demand in Las Vegas picking up and convention business there gaining steam, which bodes well for MGM Resorts and other players. He boosted the casino operator’s rating to “Buy” from “Hold” and bumped its price target to $14 from $13.

SHARE ACTION: MGM Resorts’ stock added 62 cents, or 6.5 percent, to $10.19 in afternoon trading. Over the last year, the shares have traded between $8.54 and $16.66.

(This version CORRECTS company name to MGM Resorts International.)