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Investing.com - Goldman Sachs lowered its price target on MGM Resorts (NYSE:MGM) to $31.00 from its previous target while maintaining a Sell rating on the stock. The new target aligns closely with MGM’s current trading price of $31.21, though InvestingPro data suggests the stock may be slightly undervalued based on its calculated Fair Value.
The firm cited "mixed" third-quarter results, with most segments performing in line with expectations except Las Vegas, where EBITDAR of $601 million fell approximately $50 million below both Goldman Sachs and consensus forecasts. This underperformance comes amid challenging conditions for MGM, which has seen its stock decline nearly 25% over the past year according to InvestingPro data.
Goldman Sachs noted that while the Las Vegas underperformance wasn’t surprising given recent negative data points, the magnitude of the EBITDAR decline likely exceeded investor expectations, even accounting for a net $10 million benefit in the quarter from business interruption proceeds and insurance liability expenses.
The research firm expressed skepticism about MGM’s more optimistic outlook regarding revenue stabilization in the fourth quarter and potential growth in Las Vegas next year, taking a "more cautious view pending more proof points."
Goldman Sachs maintained its Sell rating, stating it remains cautious on MGM "until we see concrete signs of a bottoming Vegas consumer," and sees "unfavorable risk/reward against this backdrop."
In other recent news, MGM Resorts International reported its Q3 2025 earnings, which showed a miss on earnings per share (EPS). The company posted an EPS of $0.24, falling short of the forecasted $0.39, marking a 38.46% negative surprise. However, MGM Resorts’ revenue slightly exceeded expectations, coming in at 4.3 billion USD compared to the anticipated 4.25 billion USD. In related developments, Mizuho raised its price target for MGM Resorts from $58 to $62, maintaining an Outperform rating on the stock. This adjustment was made despite MGM’s Las Vegas EBITDA figures falling below expectations, with the company reporting $601 million against Mizuho’s projection of $630 million. These recent developments provide investors with a mixed view of MGM Resorts’ financial performance and future potential.
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