BofA Downgrades MGM to Neutral After People Withdraws $48.30 Bid
MGM sits 17% above its 52-week low of $29.185.
Summary
BofA moved MGM Resorts to Neutral from No Rating with a $40 price objective after People Inc. withdrew its $48.30 per share takeover offer. The stock plunged 11% in premarket trading. The analyst note highlights potentially undervalued assets, including the Osaka development, but sees near-term pressure in Las Vegas, Macau, and digital. This follows yesterday's withdrawal announcement and adds the first major sell-side reaction. People still holds 27% of MGM and remains open to strategic alternatives, but the immediate catalyst is gone.
At the time of this announcement, MGM was trading at $34.05 on NYSE in the Trade & Services sector, with a market capitalization of approximately $9.5B. The 52-week trading range was $29.19 to $51.59. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.