Boston, MA 01\/29\/2014 (wallstreetpr) – The stocks of MGM Resorts International (NYSE:MGM)<\/b>, a leading hospitality company which owns and operates various casino resorts, have climber higher after it was upgraded by Bank of America Corporation (NYSE:BAC)<\/b> from \u201cneutral\u201d to \u201cbuy\u201d with a price target of $33.50. The reason Bank of America has upgraded MGM;s stock is because MGM\u2019s\u00a0 Las Vegas division is showing recovery and its China\u2019s division Macau has shown growing profits.<\/p>\n
MGM\u2019s strength<\/b><\/p>\n
The reason MGM Resorts International (NYSE:MGM) is being considered a \u201cbuy\u201d by many analysts is because MGM\u2019s revenue growth rate is the highest in the industry and MGM\u2019s revenue is rising steadily over the years which has given a significant boost to its earnings per share. The stock prices of MGM\u2019s stock have shown a growth over the years which coupled with the expansion plans made by MGM will show higher profit earnings over the coming period of time. MGM has got approval to build $295 million casino near Baltimore which shall open in 2016 and which is predicted to be MGM\u2019s most profitable venture after Las Vegas casinos.<\/p>\n
MGM\u2019s growth plans<\/b><\/p>\n
MGM Resorts International (NYSE:MGM)\u2019s 15 wholly owned casino resorts in the U.S. and its operations of MGM Macau resort and casino in China have provided a good source of earnings to MGM. MGM has refinanced its debt to CityCenter last year thereby reducing its interest payment by nearly $80 million giving MGM a chance to capitalize its gains and to grow and develop independently. Furthermore, MGM has remodeled its MGM Grand and Bellagio rooms last year because of which these properties have started performing well now. MGM is planning to open its properties at New York and Monte Carlo and is therefore revamping and upgrading its facilities at both the properties. MGM is also planning to renovate and expand its Supreme lounge by the end of 2014 which shall result in higher revenues for MGM.<\/p>\n
MGM\u2019s trouble<\/b><\/p>\n
MGM\u2019s Macau in China has been downgraded by JP Morgan Chase from \u201cbuy\u201d to \u201cneutral\u201d because JP Morgan believes that MGM\u2019s China division is not performing well and its stock are not expected to rise in the near future. This downgrading has led to a fall of 6% in MGM China\u2019s stock price giving a reason for its investors to worry. However, the MGM head office in the U.S. maintains that it is unaffected by such downfall as JP Morgan Chase has forgotten to take into consideration the fact that though MGM\u2019s China casinos growth which had depended largely on VIP investors till now has been recently growing due to China\u2019 middle classes rising interest in MGM China\u2019s casinos. The heads at MGM have maintained that things at Macau China are facing a temporary glitch and they are pretty hopeful that shares and earnings at Macau China will rise within the coming few months.<\/p>\n
Conclusion<\/b><\/p>\n
MGM Resorts International (NYSE:MGM) is and always has been one of the leading brands in its industry and with all the MGM\u2019s plans of renovation, expansion and up gradation, this is one stock which analysts and critics alike should watch out for because MGM Resorts International is here to stay, grow and to expand beyond boundaries.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 01\/29\/2014 (wallstreetpr) – The stocks of MGM Resorts International (NYSE:MGM), a leading hospitality company which owns and operates various casino resorts, have climber […]<\/p>\n","protected":false},"author":9,"featured_media":11635,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[2961,4052,1010,974],"stock_ticker":[],"class_list":["post-13990","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-bank-of-america-corporation-nysebac","tag-mgm-resorts-international-nysemgm","tag-nysebac","tag-nysemgm","entry"],"acf":[],"yoast_head":"\n