MGM Resorts downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley downgraded MGM Resorts (MGM) to Underweight from Equal Weight with a price target of $33, down from $40. After the recent rally, the firm downgraded several stocks and takes a more balanced view of the gaming, lodging and leisure space heading into 2026. While consumers should benefit from stimulus and businesses appear poised to increase travel, goods are getting renewed interest in a falling rate environment and the cycle is later for services, the analyst tells investors in a research note. Morgan Stanley is trimming its expose to the group. It cites weaker fundamentals in MGM’s core Las Vegas segment along with “tougher sledding” in Macau for the downgrade to Underweight.