MGM Resorts initiated with a Sell at Goldman Sachs

Goldman Sachs analyst Lizzie Dove initiated coverage of MGM Resorts (MGM) with a Sell rating and $34 price target The firm sees MGM as the most macro sensitive stock in its casino coverage. The company now has $1.8bn of annual lease expense and capex responsibility, and limited flexibility for any asset sales, the analyst tells investors in a research note. Goldman adds the company has high exposure to Las Vegas, which is more volatile in downturns with high decremental margins.