MGM shares offer contrarians ‘tremendous value,’ says JPMorgan

JPMorgan lowered the firm’s price target on MGM Resorts to $61 from $63 and keeps an Overweight rating on the shares. The analyst reduced Q3 U.S. land-based casino EBITDAR by $100M, taking into account the impact of last month’s cyber security attack by hackers. The firm also lowered its Q4 U.S. EBITDAR to account for a “small but lingering impact” related to the cyber attack. MGM shares are off almost 30% since it reported Q2 earnings in early August and investor sentiment towards “is extremely negative,” the analyst tells investors in a research note. It sees the shares as offering “contrarian investors tremendous value.”