Analysts have raised the targets on MGM Resorts after the company beat its first quarter earnings consensus.
Steve Wieczynski of Stifel raised his target to $47. However, his rating remains neutral as he questions whether full-scale convention and group business actually bounces back.
Wieczynski said he will remain cautious on MGM until group business returns. He also noted that he is encouraged to see the company returning capital to shareholders.
Barry Jonas of Truist raised his target to $45 but maintained his hold rating like Wieczynski, saying he awaits more progress on the Strip and in Macau to become more constructive.
Ben Chaiken of Credit Suisse raised his target to $33, highlighting his positivity from first quarter results, with regional operations resulting in potential upside to MGM’s targeted $450m in cost savings.
He expects MGM to accelerate share repurchases and dividend increases with its $6bn in cash.
Source: Fantini's Gaming Report