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Investing.com - UBS maintained its Neutral rating and $39.00 price target on MGM Resorts (NYSE:MGM), currently trading at $32.19, following the company’s announcement of the sale of its MGM Northfield Park operations. According to InvestingPro analysis, MGM shows signs of being slightly undervalued with a market capitalization of $8.74 billion.
MGM Resorts has agreed to sell the operations of MGM Northfield Park to private equity firm Clairvest Group for $546 million in cash, representing a 6.6x EV/LTM adjusted EBITDA transaction multiple. The company expects to receive approximately $420 million in net cash proceeds from the deal. For context, MGM’s overall enterprise value currently stands at 15.85x EBITDA, with the company generating $2.4 billion in EBITDA over the last twelve months.
The property being sold generated approximately $83 million in trailing twelve-month adjusted EBITDA, according to details provided in the transaction announcement.
UBS analyst Robin Farley suggested the transaction might signal MGM’s intentions for its cash reserves, noting the company could be planning share repurchases or additional investments in its digital business, which management specifically highlighted in their statement. InvestingPro data confirms management’s focus on shareholder returns, with one key ProTip noting that management has been aggressively buying back shares. Get access to 5+ additional ProTips and comprehensive analysis with an InvestingPro subscription.
The Northfield Park property has changed hands multiple times in recent years, with MGP (before becoming part of VICI) acquiring the casino in July 2018, followed by MGM Resorts purchasing the operations the following year for $275 million plus purchase price adjustments.
In other recent news, MGM Resorts reported a significant development in its BetMGM joint venture, with third-quarter 2025 revenue reaching $667 million, marking a 23% increase compared to the previous year. This follows a 36% growth in the second quarter of 2025, highlighting the company’s continued expansion in the sports betting sector. However, MGM Resorts has decided to withdraw its application for a commercial casino license in Yonkers, New York. The decision was influenced by a crowded competitive landscape and the expectation of receiving a shorter 15-year license instead of the anticipated 30-year term.
In terms of analyst ratings, UBS has maintained a Neutral rating on MGM Resorts with a price target of $39, noting a more cautious stance on prediction markets sports betting. Similarly, Citizens reiterated its Market Perform rating on MGM Resorts, reflecting steady confidence in the company’s current market position. Berenberg, on the other hand, highlighted the BetMGM joint venture’s strong performance, noting a significant improvement in net gaming revenue growth and EBITDA. These developments provide a snapshot of MGM Resorts’ current business landscape and strategic decisions.
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