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Investing.com - Stifel has raised its price target on MGM Resorts (NYSE:MGM) to $48.00 from $44.00 while maintaining a Buy rating on the stock. According to InvestingPro data, MGM’s shares are currently trading at a P/E ratio of 17.12x, with 4 analysts recently revising their earnings estimates upward for the upcoming period.
The firm acknowledged that Las Vegas Strip properties will likely face softer operating conditions this summer, with short booking windows particularly affecting lower and mid-tier properties, limiting visibility for MGM and competitors.
Stifel indicated it prefers to focus on late-2025 and 2026 performance across the Las Vegas Strip, citing stronger demand expectations primarily due to a healthier group and convention calendar that it believes is not properly reflected in current trading levels.
The research firm also noted that MGM’s regional assets continue to outperform expectations, while Macau and Digital segments may be reaching inflection points, potentially positioning MGM shares to break out from their current upper-$30 range.
Stifel raised its out-year estimates by approximately 3% per year, removing some previously embedded conservatism, with the new $48 price target based on a 2026 sum-of-the-parts valuation.
In other recent news, MGM Resorts reported a first-quarter earnings per share (EPS) of $0.69, surpassing consensus estimates by $0.23, on revenues of $4.3 billion, which fell slightly short by $7 million. CFRA adjusted their outlook for MGM Resorts, downgrading the stock from Buy to Hold and lowering the price target to $31.00, while increasing their 2025 EPS estimate to $3.30. Goldman Sachs initiated coverage with a Sell rating, citing concerns over MGM’s free cash flow due to a significant lease burden and upcoming capital expenditures. Citizens JMP maintained a Market Outperform rating with a $45.00 price target, noting an increase in short-term bookings in Las Vegas. Meanwhile, JPMorgan started coverage with a neutral rating and a $38.00 price target, highlighting Las Vegas Strip earnings momentum as a key driver for MGM’s stock performance. The firm also identified a New York gaming license as a potential positive catalyst and noted improving profitability for BetMGM, MGM’s online gambling platform. Additionally, Citizens JMP analyst Jordan Bender reiterated a Market Perform rating, pointing to potential benefits from new tax legislation for tipped employees, which could positively impact MGM’s revenue. MGM’s Las Vegas operations experienced a 3% year-over-year revenue decline, attributed to lower average daily room rates, though casino revenue increased due to higher win rates. MGM China (OTC:MCHVY) and the Digital segment saw declines in revenue and adjusted EBITDA, reflecting broader challenges.
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