Citizens reiterates Market Perform rating on MGM Resorts stock

Published 15/10/2025, 10:20
Citizens reiterates Market Perform rating on MGM Resorts stock

Investing.com - Citizens has reiterated its Market Perform rating on MGM Resorts (NYSE:MGM), currently valued at $8.8 billion by market cap, following BetMGM’s third-quarter 2025 performance. According to InvestingPro data, MGM maintains a "GOOD" overall financial health score, though 5 analysts have recently revised their earnings expectations downward for the upcoming period.

BetMGM reported revenue of $667 million for the third quarter of 2025, representing a 23% year-over-year increase, which followed 36% growth in the second quarter of 2025.

The company’s third-quarter results exceeded Citizens’ expectations by 3% overall, with sports betting revenue surpassing projections by 12% and iGaming revenue beating estimates by 2%.

BetMGM’s promotional spending declined as its business model became more efficient compared to previous years, according to Citizens’ analysis of the quarterly results.

While BetMGM experienced unfavorable outcomes in September, strong performance in July and August helped offset these negative impacts, with the company’s focus on premium mass players providing some protection against downside risk. The company maintains a healthy current ratio of 1.22, though investors should note its relatively high beta of 1.67, indicating above-average market volatility.

In other recent news, MGM Resorts International has withdrawn its application for a commercial casino license in Yonkers, New York. The decision was driven by increased competition in the area and the state’s revised guidance, which now offers only a 15-year license instead of the initially expected 30-year term. Additionally, Mizuho has adjusted its price target for MGM Resorts to $56, citing weaker-than-anticipated growth in Las Vegas, especially in hotel revenue, which led to a lowered EBITDA estimate of $630 million.

In related developments, Berenberg has reiterated its Buy rating on Entain PLC, highlighting the strong performance of its joint venture, BetMGM, with MGM Resorts, which has seen significant growth in net gaming revenue this year. Meanwhile, Citizens maintained its Market Outperform rating for Caesars Entertainment, focusing on betting platform performance during NFL Week 5.

Furthermore, major casino operators with interests in Macau, including MGM Resorts, experienced a decline in stock value following disappointing travel data from China’s Golden Week. Despite these challenges, analysts continue to monitor the evolving conditions in the gaming and hospitality sectors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.