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Investing.com - Susquehanna has raised its price target on MGM Resorts (NYSE:MGM) to $60.00 from $50.00 while maintaining a Positive rating on the stock. Currently trading at $38.56, MGM shows mixed signals according to InvestingPro data, with analyst targets ranging from $34 to $59 and the company receiving a GOOD financial health score.
The firm cited multiple value drivers behind its more bullish outlook, including approximately $1.2 billion in gross value appreciation from Macau operations and newer market value attribution from BetMGM. InvestingPro data reveals that 7 analysts have revised their earnings upward for the upcoming period, with the company generating substantial revenue of $17.1B in the last twelve months.
These positive factors have helped offset softer Las Vegas trends, particularly from lower international visitation, as destination markets show explicit weakness while regional and local casino trends have remained solid.
Susquehanna has increased its Q2 and full-year 2025 estimates for MGM, primarily due to stronger-than-expected performance in regional markets and Macau, despite previously reducing estimates for Las Vegas operations in mid-April.
The firm noted MGM appears to be preparing for improved demand starting in Q4 2025, with the company accelerating its MGM Grand renovation to conclude by early October ahead of the new sports calendar, stronger Formula 1 ticket pricing, and the Sphere launching a new Wizard of Oz show in September.
In other recent news, MGM Resorts has seen a series of analyst actions impacting its stock ratings. Seaport Global Securities downgraded MGM Resorts from Buy to Neutral, pointing out limited upside potential despite strong performance in Macau, where MGM China (OTC:MCHVY) has gained significant market share. Meanwhile, Stifel raised its price target for MGM Resorts to $48, maintaining a Buy rating, but noted potential challenges for Las Vegas Strip properties due to softer summer conditions and short booking windows. On a different note, Goldman Sachs initiated coverage with a Sell rating and set a price target of $34, expressing concerns over MGM’s lease obligations and future capital expenditures, particularly for projects in Japan expected after 2030.
Additionally, Citizens JMP reiterated its Market Perform rating, highlighting potential advantages from new tax legislation for tipped employees. This legislation allows tipped workers to deduct up to $25,000 of voluntary tips from their taxes, offering some financial relief. The series of ratings and price target adjustments reflect varied analyst perspectives on MGM Resorts’ future performance and strategic direction. These recent developments provide investors with insights into the company’s current standing and potential challenges ahead.
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