NEW YORK (TheStreet) -- MGM Resorts International (MGM) shares are down -3.3% to $25.73 on Tuesday following a report by Bloomberg suggesting that growth in China's Macau gaming region could be hurt by a slowing economy and foreign competition.
Macau surpassed the Las Vegas Strip as the world's largest gambling hub in 2006 and many gaming company's, including MGM, have opened resorts in the city.
However, the region could see July revenue slip 11% from last year's totals according to a Merrill Lynch analyst report released today.
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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. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."