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MGM Resorts (NYSE:MGM) International's stock has faced significant headwinds, touching a 52-week low of $25.61. The renowned casino and hospitality giant, currently valued at $7.56 billion, has seen its shares tumble amidst a challenging market environment, reflecting broader economic concerns and industry-specific issues. According to InvestingPro analysis, the stock appears undervalued at current levels, with technical indicators suggesting oversold conditions. Over the past year, MGM's stock has experienced a steep decline, with a 1-year change showing a drop of 42.59%. Despite the downturn, the company maintains a healthy revenue growth of 6.66% and trades at a P/E ratio of 11.55. This volatility in the entertainment and leisure sector comes as the industry navigates post-pandemic recovery and changing consumer behavior. Analysts remain optimistic, with price targets ranging from $37 to $60. For deeper insights and additional ProTips about MGM's potential recovery, including management's share buyback strategy, check out the comprehensive research available on InvestingPro.
In other recent news, MGM Resorts International reported fourth-quarter earnings that exceeded expectations, with property-level EBITDAR reaching $1.24 billion, surpassing both JPMorgan's and the Street's projections. Revenues for the quarter hit $4.35 billion, outpacing estimates by $80 million. Despite a 6% decline in Las Vegas revenues, the company saw growth in regional revenues by 7%, MGM China (OTC:MCHVY) by 4%, and Digital by 15%. JPMorgan raised its price target for MGM to $52, while CFRA upgraded the stock rating to Buy and increased the target to $45, citing the company's strong financial performance and share buyback program. Mizuho (NYSE:MFG) Securities also lifted its price target to $60, maintaining an Outperform rating and noting potential cost savings and stable financial performance despite significant expenses.
Additionally, MGM Resorts has been named an Official Partner of the College Basketball Crown, a new post-season tournament featuring 16 elite college teams. The event will be hosted at MGM's T-Mobile Arena and MGM Grand Garden Arena in Las Vegas. MGM Resorts will also provide accommodations for participating teams and offer exclusive travel-and-ticket packages in collaboration with Vivid Seats and JSX. The company will gain significant visibility through courtside signage and custom digital content during the tournament.
In governance news, MGM Resorts announced the appointment of Dame Donna Langley, Chairman of NBCUniversal Entertainment & Studios, to its Board of Directors. Langley's extensive experience in content strategy and marketing is expected to benefit MGM Resorts' vision of becoming a premier gaming entertainment company. Her appointment aligns with MGM's strategy to develop proprietary sports and entertainment content for its guests. These developments reflect MGM Resorts' ongoing efforts to strengthen its market position and enhance its offerings in the gaming and entertainment sectors.
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