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Investing.com - UBS has reiterated its Neutral rating on MGM Resorts (NYSE:MGM) stock with a price target of $39.00, according to a research note published Wednesday. Currently trading at $32.56, MGM’s stock has shown significant volatility, with a 52-week range of $25.30 to $42.53. According to InvestingPro data, the stock appears fairly valued based on its comprehensive Fair Value analysis.
UBS analyst Robin Farley noted that BetMGM has adopted a more cautious stance on prediction markets sports betting compared to its position 90 days ago, citing warnings from 40 state attorneys general and regulators that gambling licenses could be at risk even for operators participating only in states without online sports betting (OSB). This comes as analysts maintain a generally positive outlook on MGM, with an average consensus recommendation of 1.91 (Buy) and price targets ranging from $34 to $58.
BetMGM reported it is not experiencing revenue loss to prediction market operators, the note stated. The company referenced UBS research showing search trends that indicate prediction markets are primarily used in states where regulated online sports betting is unavailable.
The gaming company also highlighted prediction market activity in New York, where high tax rates make it challenging for regulated online sports betting operators to compete with the higher payouts offered by unregulated and untaxed operators.
The UBS price target of $39.00 for MGM Resorts stock remains unchanged from its previous valuation, maintaining the Neutral outlook on the casino and gaming company’s shares. Despite recent market challenges, MGM has maintained profitability with a gross profit margin of 45% and management has been actively buying back shares. For deeper insights into MGM’s financial health and growth prospects, including additional ProTips and comprehensive analysis, visit InvestingPro, where you’ll find exclusive research reports and detailed metrics.
In other recent news, BetMGM, a joint venture of MGM Resorts, reported a 23% year-over-year revenue increase for the third quarter of 2025, reaching $667 million. This follows a 36% growth in the second quarter of the same year. Meanwhile, MGM Resorts International has withdrawn its application for a commercial casino license in Yonkers, New York. The decision was driven by a crowded competitive landscape and the expectation of receiving a shorter 15-year license instead of the anticipated 30-year license.
Citizens has reiterated its Market Perform rating on MGM Resorts stock, maintaining a neutral stance following BetMGM’s performance. Berenberg, on the other hand, reiterated its Buy rating on Entain PLC, highlighting the strong performance of the BetMGM joint venture with MGM Resorts. The firm noted significant improvements in net gaming revenue growth and EBITDA. These developments come amid a backdrop of declining Macau casino stocks, including MGM Resorts, due to weaker-than-expected travel data from China’s Golden Week.
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