In a widely reported research note on MGM Resorts International (NYSE: MGM), JMP Securities analyst Jordan Bender wrote that he believes the company has a $200 million cyber insurance policy that covers business interruptions and payments to bad actors. If that’s accurate, the resort operator isn’t likely to incur significant costs attributable to the data breach.
Bender also noted that JMP forecasted that a cyber ransom paid by MGM could run anywhere from $30 million to $50 million. It’s likely that would be covered by insurance.
However, Bender said that MGM could bear short-term costs from the data breach. He estimated that the company may have lost as much as $84 million in revenue due to the ongoing breach, which started on September 10. That doesn’t include an estimated $1 million per day in lost cash flow and potential reputational damage.
Overall, Bender said that he believes the data breach is likely to have a limited impact on MGM’s financial performance over the long term. He maintained his “Market Outperform” rating on the stock and raised his price target to $45 per share.
Read More at Casino.org: MGM Has $200M Cyber Insurance Policy, Stock Can Recover, Says Analyst
Related: See the 8K disclosures by MGM and Caesars under the new SEC rules
Other News: Data Breach Costs Rise – Report(Opens in a new browser tab)