Nomura Instinet analyst Harry Curtis thinks one of the impacts of MGM Resorts (NYSE:MGM) monetizing its Bellagio property is that it sets a precedent for higher real estate valuations.
"To the extent MGM Grand can be sold at a similar mid-teens multiple that Bellagio's real estate sold for, that should likewise further de-lever MGM’s balance sheet and enhance value," notes Curtis.
Nomura keeps a Buy rating on MGM.
Shares of MGM are up 1.18% premarket to $28.20.
Previously: MGM Resorts inks deal to monetize Bellagio (Oct. 15)
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