Deutsche Bank upgraded MGM Resorts International's stock from Hold to Buy with the price target increased from $29 to $30
Carlo Santarelli, an analyst at Deutsche Bank, explained that the recent pullback from the MGM stock is to be considered an "optimal entry point" for investors seeking a “multi-year long trade.”
Santarelli explained that he thinks the risk-return at the current levels is “compelling despite the concerns over Macau growth in the near to medium term. In our view, and based on our below Consensus MGM Macau forecasts, we think the upside in Las Vegas has been overshadowed by the negative revisions in Macau to which MGM is less sensitive than peers.”
The report also mentioned improving fundamentals on the Las Vegas Strip with “significant upward trajectory potential” for asset recovery. Returns on regional developments are “largely non-existent at current levels, while the Cotai project has been significantly discounted.”
MGM Resorts International closed at $22.18 on Monday.
SiGMA Americas Virtual:
The SiGMA Americas Virtual show will run from the 13th to the 14th of September, 2021. Features include a fully interactive expo floor, networking chat rooms, and a high-profile lineup of panellists. Beautifully designed booths come equipped with state-o-the-art product displays and chatbox features, while attendees can visit the virtual stage, where a series of panels and keynotes will discuss key topics during the live 2-day conference.