Ahead of the Bell: JPMorgan cuts MGM Mirage

Joseph Greff lowered MGM Mirage to "Neutral" from "Overweight" and cut his full-year earnings estimate for the company in a note to investors.

He also cut his estimates on the entire Las Vegas Strip through 2010, saying the duration and magnitude of challenges facing Las Vegas casino operators may not be fully appreciated by investors.

Reduced airline capacity and higher gas prices will continue to significantly hurt visitation at the Las Vegas Strip, said Greff, who is now predicting a double-digit declines in MGM's same-store EBITDA for the second half of 2008.

"The Las Vegas Strip's appeal as the pre-eminent convention destination in the U.S. could be hurt," he wrote. "What's the likely result? Lower occupancy levels, lower spend and discounted room rates."

A MGM representative could not immediately be reached for comment early Thursday.

On Wednesday, shares of MGM rose 59 cents to close at $38.90. Shares have fallen by more than half since the start of the year.