Last Thursday evening, December 8th, MGM Resorts International (NYSE:MGM) more than surpassed Nomura analyst Harry Curtis‘s expectations with an exciting, successful opening for MGM National Harbor casino and resort. For the analyst, this first impression was one to be celebrated.
Curtis asserts, “Over the years, we have usually been underwhelmed with new casino resort openings. Last night was a pleasant surprise with the opening of MGM’s National Harbor (NH). While expectations were high, our opinion is that they were exceeded in most ways.”
Even with potential uphill battles, like general weekday sluggishness and traffic flow within two miles of the resort that is stationed just outside the nation’s capital, the analyst remains undeterred in his confidence. In fact, he contends MGM is “redefining regional resort development.”
Moreover, the analyst adds, “We believe that the resort will be successful during weekends and holidays. Weekdays are, by definition, more challenging, but MGM is the industry leader in attracting group meetings and conventions.”
Ultimately, as the analyst sees the colossal win, this is more than just a short-term victory for the company. “The longer-term strategic impact of NH’s successful opening on future developments cannot be understated, in our view. Whether Japan approves integrated resorts or not, NH will be used as the standard for projects under consideration,” Curtis concludes.
Anticipating full bullish steam ahead for MGM, the analyst reiterates a Buy rating on shares of MGM with a $34 price target, which represents an almost 17% increase from current levels.
Assuming MGM can conquer traffic congestion, the analyst calls for 2017 EBITDA of $179 million, and boosts his expectations to $209 million come 2018.
As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, five-star analyst Harry Curtis is ranked #115 out of 4,273 analysts. Curtis has a 70% success rate and garners 13.7% in his annual returns. When recommending MGM, Curtis earns 4.0% in average profits on the stock.
TipRanks analytics indicate MGM as a Strong Buy. Out of 8 analysts polled by TipRanks in the last 3 months, 100% are bullish on MGM Resorts International stock. With a return potential of nearly 10%, the stock’s consensus target price stands at $32.00.