Merrill Upgrades MGM Mirage to 'Strong Buy'
Merrill Lynch upgraded MGM Mirage (MGG ) to near-term strong buy from buy and named it as a Focus One stock.
Analyst David Anders says with its premier properties, he believes the company will be one of the primary beneficiaries of an improving Las Vegas environment. As demand returns, he thinks Vegas operators, MGM Mirage in particular, is well positioned, given that no new supply is expected until 2005. The company maintains visible growth opportunities in Atlantic City and Vegas. Also has several meaningful wildcards, including potential properties in Chicago, Macau and Great Britian as well as prospects for Internet gaming site on the Isle of Man in the center of the British Isles. He set a $38 target.