previously expressed doubt<\/a> that the gaming company would look to materially reduce its stake in MGP, because MGM collected $333 million in dividends from the real estate company last year.<\/p>\nAsset Light Not All It’s Cracked Up To Be<\/h2>\n
Murren has long extolled the virtues of moving to an \u201casset light\u201d model. But Wieczynski thinks that transition forces investors to reassess views on MGM stock.<\/p>\n
\u201cAs supported by the multiples being paid for gaming real estate today, we would contend the overwhelming majority of the business lies in the hard assets that MGM is electing to sell,\u201d said the analyst. \u201cThat said, absent the real estate, we believe investors will have to think long and hard about how to properly value MGM\u2019s ‘asset light’ operations, particularly upon considering the overwhelming majority of the operations are concentrated in a market that has proven relatively volatile during prior shocks to the US macro economy<\/strong>.\u201d<\/p>\nThe Stifel analyst has a \u201chold\u201d rating and $32 price target on MGM.<\/p>\n","protected":false},"excerpt":{"rendered":"
MGM Resorts International (NYSE:MGM) stock is slightly higher in midday trading. That comes a day after the company reported third-quarter results that missed Wall Street forecasts, while revealing some softness on the Las Vegas Strip. For the three months ending Sept. 30, the gaming company earned 31 cents per share on revenue of $3.31 billion, […]<\/p>\n","protected":false},"author":46,"featured_media":118587,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,33810],"tags":[],"acf":[],"yoast_head":"\n
MGM Earnings Draw Mixed Reaction From Analyst Critiquing Asset Sales<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n