New York- Shares of MGM Resorts International trended higher in September and finished the month up 25%. On Friday shares reached a high of 11.44 but finished at 11.23. MGM recently received a price target increase by Jefferies to $12 but they maintained a hold opinion on the shares. Andy Kibbens CEO of The Markets Are Open stated "this is the usual game by the analysts of moving their target price as the stock deviates from their original one."
Recently, the stock has outperformed the general market. This may be because of anticipation of a spin off of MGM Macau on the Hong Kong stock exchange which will enhance liquidity for MGM. Kibbens said "this is very positive news and the money raised, will enhance MGM's liquidity." However, an IPO (Initial Public Offering) hurts long term prospects of NYSE: MGM shareholders because they own less of MGM. Despite MGM having a large debt load Kibbens does not expect them to default. He also expect MGM to lose 23 cents in Q3.
To see his full report on MGM Resorts International Click Here
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