J.P. Morgan Securities Likes Out Of Favor MGM Mirage (MGM)

J.P. Morgan Securities analysts Joseph Greff, Carlo Santarelli and Daniel Yoon reaffirmed their Overweight rating for shares of MGM Mirage (NYSE: MGM), with a price target of $14.

The analysts said that they believe that the Las Vegas Strip's group/convention bookings are under-appreciated and that their importance isn't reflected in the share price of MGM Mirage.

The analysts also said that recent capital market transactions and a $380 million tax refund should provide MGM Mirage with enough liquidity to meet both 2010 and 2011 scheduled debt maturities and revolver paydown requirements.

The J.P. Morgan Securities analysts wrote, "we reaffirm our Overweight rating and $14 year-end 2010 price target and believe that MGM remains the most out-of-favor gaming operator equity with low expectations, providing an opportunity to surprise modest operational and financial expectations in the near term."