David Katz, an analyst from Jefferies, reiterated the Buy rating on MGM Resorts (MGM – Research Report). The associated price target remains the same with $50.00.
David Katz has given his Buy rating due to a combination of factors that highlight MGM Resorts’ promising future. The company’s management has provided guidance indicating that they expect profitability to be achieved this year, with iGaming being a key driver of financial performance. This, coupled with the company’s strategy to eventually gain full control over its operations to enhance execution and value capture, supports a positive outlook.
Furthermore, BetMGM has shown strong revenue growth, particularly in the iGaming segment, and anticipates continued upward trends in revenue and profitability through 2025. The company projects no need for additional capital from parent companies, which is a positive signal for financial stability. Overall, strategic investments in enhancing product offerings and targeting premium mass consumers are expected to further bolster MGM’s market position, justifying the Buy rating.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MGM in relation to earlier this year.