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Analyst Upgrades MGM Mirage

24 July 2002

NEW YORK -- Prudential Securities gaming analyst William Lerner has upgraded shares of MGM Mirage from "hold" to "buy," citing the company's relatively low stock price, stronger-than-expected second quarter results and expected future growth.

Shares of MGM Mirage have declined nearly 25 percent from April 25, primarily due to broader market declines but also because of the potential impact of higher gaming taxes in Illinois and Indiana, where the company has no exposure, Lerner said.

Lerner upped his 2002 earnings per share estimate for the company from $1.86 to $1.95 and his 2003 estimate from $2.14 to $2.32. The 12-month price target jumped from $36 to $39.

"We anticipate the company's operating environment over the medium term to be characterized by the exercise of pricing power and aggressive cost containment in a substantially recovered Las Vegas," he said

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