A game analyst issued a “buy” recommendation for MGM Resorts International’s stock, saying the impact of a cyberattack on the company would be minimal.
In a report released Sunday, New York-based Jefferies stock analyst David Katz offered a price target of $69 per share for MGM shares. At midday Monday, the stock was trading at about $37 a share.
“We view the cyberattack as a single event affecting our third quarter of 2013 and 23-year estimates, with minimal (minimum) impact on our long-term estimates,” Katz said in a report to investors. “While we are adjusting our Q2 (or second half of the year) estimates to reflect MGM’s updated comments, we expect the impact to be covered by insurance and remain in place in 2024-2025. Our fundamental paper remains in a strong top-line Las Vegas market that partially offsets costs, improves digital and incremental Macao recovery.” 바카라사이트
Katz cited an Oct. 5 report by the MGM Securities and Exchange Commission that recorded a cyberattack in early September that affected MGM computer operations for nine days.
In the filing, MGM estimates a $100 million impact on cash flow and says it will cost $10 million in one-off costs to pay technical consulting fees, legal fees and other related expenses.
“This event from MGM and its peers (Ceasars Entertainment Inc.) presents a set of questions about how companies deploy resources to reduce risk,” the report says.
“In this case, despite the fact that companies expect a significant focus on preventive training, the incident was due to one person’s mistake. In addition, the existence of insurance provides risk mitigation for what is becoming increasingly common in consumer businesses. Reflecting on this issue, we believe the issue should not have a lasting impact on MGM shares, earnings are insured and market fundamentals appear strong.”
augmentin 625 online