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Investing.com - CFRA has downgraded MGM Resorts (NYSE:MGM) from Buy to Hold and reduced its price target to $35.00 from $47.00, citing weakness in Las Vegas operations and slowing growth. This aligns with InvestingPro data showing 5 analysts have recently revised earnings downwards for the upcoming period, while the stock currently trades at $31.96, down 15.35% over the past year.
The research firm lowered its 2025 earnings per share estimate by $1.05 to $2.25 and its 2026 estimate by $1.10 to $2.50, reflecting concerns about the company’s growth trajectory despite its strong balance sheet and diversified property portfolio. Current consensus EPS forecast for FY2025 stands at $2.49, with the company maintaining a high P/E ratio of 134.41 despite modest revenue growth of just 0.76% in the last twelve months.
MGM reported third-quarter normalized earnings per share of $0.24, down from $0.54 in the same period last year and $0.06 below consensus estimates, while revenue reached $4.25 billion, slightly above analyst expectations of $4.17 billion.
Las Vegas operations showed a 7% year-over-year revenue decline, primarily due to the MGM Grand remodel, decreased revenue per available room, and lower table game win percentage, resulting in an 18% drop in adjusted EBITDAR for that segment.
While MGM China posted strong results with a 17% revenue increase and 20% EBITDAR growth, and MGM Digital saw revenues rise 23%, the company’s regional operations remained nearly flat with a 0.5% revenue increase and 1% EBITDAR decline.
In other recent news, MGM Resorts reported its third-quarter 2025 earnings, revealing a significant miss on earnings per share (EPS), which came in at $0.24 compared to the expected $0.39. Despite this shortfall, the company’s revenue slightly surpassed expectations, reaching $4.3 billion against a forecast of $4.25 billion. Analysts from Stifel, Goldman Sachs, and Mizuho have provided differing outlooks on MGM Resorts. Stifel adjusted its price target to $45, maintaining a Buy rating, citing weakness in Las Vegas operations. Goldman Sachs lowered its price target to $31 with a Sell rating, highlighting that Las Vegas EBITDAR fell short of expectations. Meanwhile, Mizuho raised its price target to $62, maintaining an Outperform rating, despite acknowledging that Las Vegas EBITDA figures were below projections. These developments reflect varied perspectives on MGM’s financial performance and future outlook.
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