A profit of 2 cents per share, excluding one-time items, is all it took for MGM Resorts to beat Wall Street’s expectations for third-quarter earnings.
News of deeper third-quarter losses for competitors, Boyd Gaming and Caesars Entertainment, helped drive investors away from casino stocks this week. Although MGM fell 5 percent this week, it remains up 65.8 percent so far this year.
Several analysts reiterated their “Buy” ratings on MGM after its earnings release, citing a strong outlook for 2014. In a note to clients, financial analyst Robert LaFleur of Cantor Fitzgerald wrote, “We are buyers because 2014 is shaping up to be a very good year in Las Vegas as convention business finally returns ....”
Wall Street analysts have an average target price for the stock of $22.68, which reflects projected appreciation of almost 18 percent.
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