Hudson Securities gaming analyst Robert LaFleur isn't sold on a recovery of MGM Resorts International.
In a research note published Friday, LaFleur told investors MGM Resorts' stock price is trading at 14 times cash flow, far above where the company should be trading.
LaFleur said investors might be reading too much into a recovery of the Strip, where MGM Resorts operates 10 casinos.
LaFleur cautioned investors because his tracking shows hotel room rates cooling off during the first two weeks of February.
"We wish we had been sharp enough to make this call last week when the stock was flirting with $17, but we still think MGM is worth about $12, which is 22 percent below its current level," LaFleur said. "We think a sell rating is most appropriate."
MGM Resorts shares fell 33 cents, or 2.15 percent, Friday to close at $15 on the New York Stock Exchange.