The Las Vegas-based holding company, which operates casinos, announced yesterday that it plans to create a publicly traded real estate investment trust.
"We are reserving judgment on the prudence of the REIT given the many unknown moving parts," Deutsche Bank said. "That being said, we are confident the REIT is accretive to equity value, but how accretive is something we struggle with."
MGM Resorts also reported earnings of 12 cents per share on $2.28 billion in revenue for the most recent quarter. Analysts surveyed by Thomson Reuters had forecast for earnings of 4 cents per share on revenue of $2.3 billion.
Shares of MGM Resorts were up by 1.54% to $23.15 in late afternoon trading on Friday.
Separately, TheStreet Ratings team rates MGM RESORTS INTERNATIONAL as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate MGM RESORTS INTERNATIONAL (MGM) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
You can view the full analysis from the report here: MGM