Analyst Steven Wieczynski from Stifel Nicolaus maintained a Buy rating on MGM Resorts (MGM – Research Report) and increased the price target to $50.00 from $47.00.
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Steven Wieczynski has given his Buy rating due to a combination of factors indicating potential growth and value in MGM Resorts. The company has demonstrated a strong start to the year with record-setting performance in January, which alleviates concerns about its ability to grow amid challenging comparisons on the Las Vegas Strip. This positive momentum is expected to continue, supported by robust group and convention bookings and a favorable event calendar in the first half of 2025.
Furthermore, Wieczynski notes that MGM’s shares are currently undervalued, trading at less than six times the projected 2026 EBITDA, which presents an attractive risk/reward profile. The company’s solid fundamentals, including strong free cash flow, a robust development pipeline, and a stable balance sheet, are not fully reflected in the current stock price. Additionally, potential growth in Macau could offset any economic slowdown in the U.S., making MGM a compelling investment opportunity.
Wieczynski covers the Consumer Cyclical sector, focusing on stocks such as Carnival, Las Vegas Sands, and MGM Resorts. According to TipRanks, Wieczynski has an average return of 14.5% and a 52.97% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $47.00 price target.