The possibility of worker strikes at major U.S. casinos is rising. Last week, nearly 95% of the members of the Culinary and Bartenders unions approved a strike that could impact casino majors MGM Resorts (NYSE:MGM) and Caesars Entertainment (NASDAQ:CZR).
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Now, workers at three casinos in Detroit have voted for a strike. If a new contract deal fails to materialize, the strike would affect the MGM Grand Detroit, Hollywood at Greektown, and MotorCity casinos.
Further, the Detroit Casino Council (DCC) could call for strikes as early as the middle of this month, according to Reuters. The deadline for securing new contracts is October 16.
Labor unions are seeking higher pay and improved working conditions for workers across multiple industries. Both the United Auto Workers (UAW) and the Teamsters Union are members of the DCC.
Recently, the Teamsters successfully negotiated a new five-year contract covering nearly 340,000 workers at United Parcel Service (NYSE:UPS). Strikes by nearly 25,000 UAW workers have led to the shuttering of five auto plants at General Motors (NYSE:GM), Ford (NYSE:F), and Stellantis (NYSE:STLA) so far.
What Is the Target Price for MGM Stock?
Overall, the Street has a consensus price target of $57.79 for MGM, alongside a Strong Buy consensus rating. This implies a 57% potential upside in the stock.
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