Schaeffer's Trading Floor Blog

Analyst Upgrades: LGF, MGM, and VMW

Analysts upwardly revised their ratings on Lions Gate, MGM Resorts, and VMware

by 6/1/2012 9:15 AM
Stocks quoted in this article:

Analysts are weighing in today on movie mogul Lions Gate Entertainment Corp. (LGF - 13.32), casino operator MGM Resorts International (MGM - 10.83), and virtualization specialist VMware, Inc. (VMW - 93.01). Here's a quick roundup of today's bullish brokerage notes.

  • On the heels of its latest earnings release, LGF was upgraded to "outperform" from "sector perform" at RBC. The brokerage firm also hiked its price target to $15 from $12.50, implying expected upside of 12.6% from Thursday's close at $13.32. LGF barely eked out a positive finish yesterday, recovering from its session lows after meeting up with support at its 10-day moving average and the $12.50 area. Year-to-date, the stock has gained an impressive 60%.

  • Macquarie raised its opinion of MGM to "outperform" from "neutral," just after government data showed that revenue growth in gambling hotspot Macau slowed to its lowest level in nearly three years during the month of May. The shares are off more than 3.5% ahead of the open, deepening their 52-week decline of 26.7%. Most analysts are firmly planted in the bullish camp when it comes to MGM, as 15 brokerage firms out of 21 have doled out a "buy" or "strong buy" endorsement.

  • Mizuho Securities upgraded VMW to "buy" from "neutral," arguing that the stock's steep 19% slide over the past month "has compressed valuation toward the lower end of a 4-year range." In fact, the shares are now planted squarely above their 20-month moving average, which has helped to contain VMW's pullbacks since September 2009. As indicated by Macquarie's note, the stock's Relative Strength Index (RSI) of 34 is verging on oversold territory; however, a bearish pre-market bias has the stock 2.6% lower ahead of the bell.

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