UPDATE: MGM Resorts downgraded as Las Vegas tragedy leads to lower outlook
By Tomi Kilgore, MarketWatch
Shares slipped further Tuesday, after tumbling 5.6% on Monday
Shares of MGM Resorts International fell again Tuesday, after Susquehanna Financial backed away from its long-held bullish stance on the hotel and casino operator, citing concerns that the mass shooting in Las Vegas could have a negative effect on bookings and profits in the coming months.
Analyst Rachael Rothman cut her rating to neutral, after being at positive for at least the past three years. She slashed her stock price target to $33, which is just 7.5% above Monday's closing price, from $38.
Rothman said that while she still has a favorable outlook on Las Vegas and MGM, and is confident that U.S. consumers and MGM employees will "demonstrate their resiliency and business will rebound," history suggests there is heightened risk that results will weaken and the stock will fall in the near term after the tragedy.
The mass shooting occurred at MGM's Mandalay Bay property in Las Vegas (http://www.marketwatch.com/story/mgm-resorts-stock-falls-5-premarket-after-mandalay-bay-shooting-2017-10-02).
See also: At least 59 killed and 527 injured in mass shooting at Las Vegas concert (http://www.marketwatch.com/story/reports-of-dead-injured-after-mass-shooting-at-las-vegas-concert-2017-10-02).
"Although it is too soon to assess the impact of the events on forward bookings, pricing and costs, we will continue to monitor room rate pricing changes along the [Las Vegas] Strip for inflection points and will adjust our estimates and ratings accordingly," Rothman wrote in a note to clients.