Analyst David Katz of Jefferies maintained a Buy rating on MGM Resorts (MGM – Research Report), retaining the price target of $53.00.
David Katz has given his Buy rating due to a combination of factors including the positive performance of BetMGM in the first quarter of 2025. The company reported a significant increase in net revenues, particularly in online sports betting (OSB) and iGaming segments, which indicates resilience even amidst uncertain economic conditions. The growth in handle and improvement in net gaming revenue (NGR) margins suggest that MGM is becoming more efficient and disciplined in its operations.
Furthermore, despite a slight decrease in hold rates, the increase in NGR margins reflects a strategic approach to promotional spending, which is beneficial for the industry. The rise in average monthly active users and the substantial improvement in adjusted EBITDA also contribute to a positive outlook for MGM. These factors, along with the company’s unchanged guidance for fiscal year 2025, support Katz’s optimistic view and Buy rating for MGM Resorts.
In another report released yesterday, JMP Securities also reiterated a Buy rating on the stock with a $45.00 price target.
MGM’s price has also changed moderately for the past six months – from $41.720 to $32.210, which is a -22.79% drop .