From Standard & Poor's Equity ResearchCITIGROUP INITIATES COVERAGE ON MGM MIRAGE WITH SELL
Citigroup analyst Anil Daswani says the completion of CityCenter could not come at a worse time for MGM Mirage (MGM): 55% of condo units have been sold, with only 20% deposits being received.
Considering estimated spot prices have fallen 33% since pre-sales, his base case is a 20%-30% default rate. With 60% of Las Vegas revs now coming from non-gaming, weaker discretionary spending has greater impact on the Strip. As 80% of MGM's revenues come from Las Vegas, Daswani forecasts MGM's Las Vegas Strip EBITDA to decline 32% to $1.1 billion in 2009.
He has a $2.50 price target. He also notes the company has $15.4 billion in debt.
CARIS CUTS SANDISK TO BELOW AVERAGE FROM AVERAGE
Caris analyst Betsy Van Hees says her downgrade follows SanDisk's (SNDK) fourth quarter report of a greater-than-expected non-GAAP loss of $1.65 and its particularly bearish first quarter outlook ($450-$575 million revenue.).
Van Hees expects the NAND market to continue to face a challenging environment throughout most of 2009 and believes despite the company's cost cuts and streamlining of products that it will continue to incur considerable losses further eroding its balance sheet.
She widens $0.59 first quarter pro-forma loss per share view to $0.71 loss and $0.82 2009 loss to $2.72 loss. She cuts $12 price target to $8.