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MGM Resorts (NYSE:MGM) International’s stock has faced significant headwinds, touching a 52-week low of $31.61. With a P/E ratio of 13.17 and revenue growth of 6.66%, InvestingPro analysis suggests the stock is currently trading slightly below its Fair Value. The renowned casino and hospitality giant has seen its shares struggle in a challenging market environment, reflecting a broader downturn in the entertainment and tourism sectors. Over the past year, MGM’s stock has experienced a notable decline, with a 1-year change showing a decrease of 24.58%. This downturn mirrors investor concerns over travel restrictions and changing consumer behavior, which have heavily impacted the industry. Despite these challenges, analysts maintain optimistic price targets ranging from $41 to $60, suggesting significant potential upside. MGM’s latest stock price level highlights the volatility and the pressures the company faces as it navigates through an uncertain economic landscape. Discover more exclusive insights and detailed analysis in the comprehensive Pro Research Report, 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. The company’s revenue for the quarter was $4.35 billion, beating estimates by $80 million, despite a 6% decline in Las Vegas revenues. MGM’s regional revenues grew by 7%, MGM China (OTC:MCHVY) by 4%, and Digital by 15%. Additionally, MGM Resorts has been named an Official Partner of the College Basketball Crown, a new post-season tournament, which will be held at its venues in Las Vegas.
JPMorgan raised its price target for MGM Resorts stock to $52, maintaining an Overweight rating, citing the company’s strong Las Vegas operations and record domestic performance. CFRA upgraded MGM Resorts’ stock rating to Buy from Hold, increasing the price target to $45, highlighting the company’s share buyback program as a significant factor. Mizuho (NYSE:MFG) Securities also lifted MGM’s stock price target to $60, maintaining an Outperform rating, with expectations of stable financial performance despite one-time expenses.
Truist Securities maintained a Buy rating with a $50 price target, noting MGM’s strong regional and Macau results and a positive outlook for its digital ventures. These developments reflect confidence from multiple analysts in MGM Resorts’ ability to sustain growth and navigate through various financial challenges.
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