MGM Mirage price target cut on Las Vegas concerns

12.02.2009, MGM Mirage Inc.'s reliance on the Las Vegas market, which has been hard hit by the housing slowdown and tightened consumer spending, led an analyst to cut his price target on the casino operator Wednesday.

MGM Mirage (nyse: MGM - news - people ) has been pressured as consumers continue to curb discretionary spending due to economic worries and job concerns.

Jeffrey Logsdon of BMO Capital Markets dropped his price target to $19 from $30, saying MGM Mirage gets about 85 percent of its property-level earnings before interest, taxes, depreciation and amortization from Las Vegas.

"Each monthly (Las Vegas) revenue report is increasingly weak, and operators and investors have little, if any, visibility to when the situation might take a turn for the better," he wrote in a client note.

Logsdon slashed his fourth-quarter earnings-per-share estimate to 15 cents from 30 cents. He also reduced his 2009 forecast to 51 cents per share from $1.03 per share and lowered his 2010 estimate to 74 cents per share from $1.25 per share.

Logsdon maintained an "Outperform" rating on MGM Mirage.

On Tuesday, Robert LaFleur of Susquehanna Financial Group downgraded MGM Mirage to "Negative" from "Neutral" and provided a $2 price target, also citing troubles in the Las Vegas market.

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Shares of Las Vegas-based MGM Mirage slipped 12 cents to a new 52-week low of $5.40 in morning trading. The stock has ranged from $5.47 to $71.96 over the past year.

Forbes.com / Associated Press

Über MGM Grand Hotel and Casino:

Das MGM Grand gehört zu den grössten Hotels der Welt. Der Hotelkomplex besitzt 5'044 Hotelzimmer und ist direkt mit dem Casino verbunden.

Das Casino ist mit seinen 15'930 m2 riesengross und bietet alle Casinospiele an. Die Tischspiele Roulette, Black Jack sind zahlreich vorhanden. Ebenso findet man einen Pokerraum und unzählige Spielautomaten.

Zur Geschichte des MGM Grand Hotel

1973 wurde das original MGM Grand eröffnet. Das Original-Hotel-Casino wurde 1986 von MGM an Bally Entertainment Corp. verkauft und umbenannt ins heutige Bally's.

1993 öffnete das heutige MGM Grand als damals grösstes Hotel der Welt seine neuen Tore.

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