MGM Resorts downgraded to Neutral at BTIG, sees shares rangebound

BTIG downgraded MGM Resorts (MGM) to Neutral from Buy ahead of the Q4 earnings report. The firm is optimistic around iGaming market expansion, and sees higher odds of several new states launching over the next several years, though visibility at this stage is still very low and expert opinions vary around which states are higher/lower probability, the analyst tells investors in a research note. The same projects that BTIG believes can create meaningful value for the enterprise over the long-term are also likely to be a drag on cash flow for MGM in the near-term, and with top line and EBITDA growth likely to moderate in 2025, the firm now sees higher capex leading to lower net cash flow in 2025, and BTIG expects shares could be relatively rangebound in this scenario.