UPDATE: Credit Suisse Lowering Price Target On MGM

Credit Suisse is out with a research report on MGM MGM and is lowering its price target to $10 from $11, and is keeping its Underperform rating. In a note to clients, Credit Suisse writes, "MGM reported 2Q11 adjusted EBITDA of $366m versus consensus of $351.5m and our estimate of $340.6m. Macau was the standout performer in the quarter, generating $170m of adjusted property EBITDA versus our $120m estimate, albeit the property held favorably. We weren't surprised to see Bellagio and Mandalay Bay perform well in 2Q11 as the high-end baccarat and convention businesses have been steadily recovering. With that said, even against easy comparisons, the company's mid-tier assets still had mixed results. While there were some glimmers of hope in 2Q11, investors are going to be more focused on the forward outlook for the US economy after the recent stock market sell-off. We aren't convinced at this point that recently improving trends will continue." Shares of MGM lost $1.12 yesterday to close at $11.54.