Analysts have lowered their price target for MGM Resorts International from approximately $47.92 to $46.68 per share. They cite softening Las Vegas trends and mixed sentiment around recent updates in Macau and corporate strategy.
Analyst Commentary
Recent analyst reports have highlighted a mix of positive and negative factors affecting MGM Resorts International, resulting in shifts to price targets and outlooks. These perspectives encompass performance projections from both the Las Vegas and Macau markets, capital allocation strategies, and sector-wide trends that could influence MGM's future valuation and growth trajectory.
Bullish Takeaways- Some bullish analysts have raised price targets based on improving industry trends in Macau and a more favorable multiple for the company's Macau operations.
- Withdrawal from the New York casino license process is seen as beneficial, providing MGM with greater capital allocation flexibility and freeing up significant funds for potential investment or shareholder returns.
- A view persists that MGM shares may already reflect the majority of negative factors going into upcoming earnings reports. This could offer relative downside protection and a possible value opportunity.
- Certain analysts believe MGM is positioned to benefit from industry policy changes, particularly if iGaming becomes a more prominent source of tax revenue in select markets.
- Bearish analysts are lowering price targets due to continued declines in Las Vegas RevPAR trends. Expectations are for modest sequential improvement at best as recent softness persists.
- Recent performance in Macau during Golden Week was noted as disappointing, with year-over-year declines in average daily revenue and lower-than-expected visitation, contributing to cautious sentiment.
- Some have flagged ongoing macroeconomic headwinds in China and a gaming slowdown in the U.S., which could limit near-term growth and pressure valuation multiples.
- There are concerns that upcoming quarters may mirror recent weak performance, particularly in Las Vegas. This could weigh on EBITDA results and investor sentiment.
What's in the News
- Macau anticipates its fourth tropical storm in five weeks. Gaming companies, including MGM Resorts, are experiencing weaker trading as a result (Macau Business).
- MGM Resorts International was dropped from the FTSE All-World Index (USD) (Key Developments).
- MGM and Playtech expanded their "Live from Vegas" offering with the launch of Family Feud, the first interactive game show broadcast live from a Las Vegas casino floor and available outside the U.S. (Key Developments).
- ARIA Resort & Casino, operated by MGM Resorts, will debut the Two Michelin-starred restaurant Gymkhana this fall, elevating its Las Vegas dining offerings (Key Developments).
- MGM repurchased 7,012,458 shares for $200 million between April and June 2025, completing over 17% of their authorized buyback program (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has decreased from $47.92 to $46.68 per share, reflecting a modest downward revision.
- Discount Rate remains unchanged at 12.32%, indicating no shift in risk assumptions.
- Revenue Growth projection has edged down from 2.27% to 2.09%, which suggests a slight tempering of expected expansion.
- Net Profit Margin has increased marginally from 4.92% to 4.98%, which points to a modest improvement in profit expectations.
- Future P/E Ratio has declined from 16.34x to 15.80x, indicating lower anticipated valuation multiples.
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AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.