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Investing.com - Mizuho (NYSE:MFG) has reduced its price target on MGM Resorts (NYSE:MGM) to $58.00 from $59.00 while maintaining its Outperform rating on the stock. Currently trading at $37.88, MGM shows a beta of 1.77, indicating higher volatility than the broader market. InvestingPro data reveals the company maintains a GOOD overall financial health score.
The firm cited MGM’s depressed valuation as a "perpetual issue," noting that the company’s core operations are trading at less than 4x EBITDA due to what Mizuho describes as an "opco valuation disconnect in the public markets." With a market capitalization of $10.31 billion and trailing twelve-month EBITDA of $2.45 billion, InvestingPro analysis suggests the stock is currently fairly valued, with additional ProTips available for subscribers.
MGM Resorts repurchased $217 million of stock in the second quarter of 2025, bringing first-half repurchases to $711 million, with $2.1 billion remaining in the company’s authorized repurchase program.
Mizuho believes MGM is likely to accelerate its share repurchases due to OBBB bonus depreciation tax benefits, noting the company will receive a $100 million tax credit in 2025 instead of paying $100 million in cash taxes as previously expected.
The firm also anticipates MGM’s cash taxes in 2026 will be "significantly lower than normal," though it acknowledged uncertainty about the exact capital schedule for that year.
In other recent news, MGM Resorts International reported a strong performance in the second quarter of 2025, surpassing both earnings and revenue forecasts. The company achieved an earnings per share (EPS) of $0.79, exceeding the forecasted $0.55, representing a notable surprise of 43.64%. Additionally, revenue reached $4.4 billion, surpassing the anticipated $4.31 billion. These results reflect a robust quarter for MGM Resorts, highlighting the company’s ability to outperform market expectations. Despite the positive earnings report, MGM’s stock experienced a slight dip in aftermarket trading. Investors and analysts will likely monitor how these developments influence future performance. These recent developments underscore MGM Resorts’ financial strength in the current market.
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