Analyst skeptical about recovery for MGM Resorts

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.


Rules for posting comments

Comments posted below are from readers. In no way do they represent the view of Stephens Media LLC or this newspaper. This is a public forum. Read our guidelines for posting. If you believe that a commenter has not followed these guidelines, please click the FLAG icon next to the comment.


Due to an increase in uncivil behavior and dialogue the Review-Journal has temporarily disabled the comment boards. The Review-Journal will use the time to evaluate the effectiveness of the comment boards and find an appropriate time to reintroduce them to