This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

MGM Mirage Gains on Broker Move

MGM Mirage (MGG ) shares gained as much as 2% Thursday after a Wall Street analyst said there's still plenty of room for the stock to roar.

Although the stock is at 52-week highs, it will rise further to hit $87 over the next year, contends J.P. Morgan's Harry Curtis, who on Thursday raised his price target to that level from $72.

In reaction, shares were up 71 cents, or 1.0%, at $72.75, after hitting $73.50 earlier in the session. MGM Mirage and other big casino company stocks have been on a roll this year, with the Dow Jones U.S. Gambling Index up about 32% in 2004.

Booming Las Vegas business, MGM Mirage's pending acquisition of Mandalay Resort Group (MBG) and increasing opportunities abroad could boost the company in the new year, Curtis wrote in a research note. (J.P. Morgan does and seeks to do business with companies covered in its research reports.)

"The stock remains one of our favorite picks to outperform the S&P 500 in 2005," Curtis wrote. "Our thesis of pricing strength in Las Vegas and the first-quarter 2005 merger with Mandalay driving 20%-plus EPS growth is as powerful in early 2005 as it was in early 2004 when we initially recommended MGM Mirage."

Curtis views near-term trends on the Las Vegas strip as bullish. "Recently, we spoke with several casino operators in Las Vegas who confirmed our positive forward room pricing data for the New Year's holiday week," he wrote. "Most hotels are either sold out or are reserving 1% to 2% of their rooms for either the highest rollers or last-minute cash-paying customers willing to spend at least $500 a night for a room."

But more important, contends Curtis, is that room prices for January and February continue to increase.

Going forward, MGM Mirage is poised to benefit from gambling expansion abroad, Curtis wrote, noting that on Wednesday the government of Singapore announced it will accept preliminary proposals on a casino resort as it decides whether to open the island state to Las Vegas-style casino gambling. MGM Mirage has already announced developments in the Chinese enclave of Macao and the U.K., where the government is working to liberalize gaming.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs