Dallas, Texas 04/08/2014 (FINANCIALSTRENDS) – MGM Resorts International(NYSE:MGM) was given a rating change by various analysts. The stock prices of this hospitality company dealing with casino ownership spiraled down in the latest trading session because of the news of decrease in revenue of Macau casino.
Rating changes for MGM Resorts International (NYSE:MGM)
Various analysts have provided a revises rating for MGM Resorts International(NYSE:MGM). The analysts at Barclays have given an ‘Overweight’ rating for the stock with a new price target of $31.00; which is $1 higher than the previous price target. Susquehanna has provided a revised price target of $34.00 from the previous $30.00. Citigroup Inc. analysts have set the new target price of MGM Resorts International(NYSE:MGM) as $34.50 from the earlier $32.00. The analysts at Ascendiant Capital Markets have set a ‘Buy’ rating for the stock. The overall average rating for the stock has been given as ‘Buy’ with a price target of $26.76. The breakup for the ratings includes 17 ‘Buy’ and three ‘Hold’ ratings. The stock price for the company is currently at $23.92 after Monday’s trading session.
Macau casino revenue slump
The stock prices of MGM Resorts International(NYSE:MGM) went down when the news spread that the average daily earnings from Macau casinos has reduced around 17% to 21%. The reason for this slump is presumed to be the inclement weather. The Wall Fargo channel checks showed the revenue at MOP 900 to 950 million from the earlier MOP 1.14 billion of March. The estimates for revenue from Macau have been lowered by Wall Fargo in light of this new development.
Q4 earnings missed estimates
The earnings for the fourth quarter declared on February 19th showed the EPS as -$0.08 which was $0.01 lower than the estimates from Thomson Reuters. The revenue was higher than the estimates, posting $2.50 billion against the estimated $2.46 billion. The estimates for EPS for the current fiscal year are set at around $0.34.