Casino major MGM Resorts’ (NYSE:MGM) tentative union contract has received mixed responses from unionized workers, according to Clicondetroit. While workers at MotorCity Casino and Hollywood Casino voted in favor of the deal, workers at MGM Grand voted it down.
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The unionized workers voted separately at the three properties and the Detroit Casino Council noted that “more bargaining dates” would be lined up for negotiations. Previously, MGM officials had pointed out during the bargaining process that this would be the biggest pay hike in its history and responded to the workers’ reaction to the five-year labor deal as “a very disappointing result.”
The Detroit casino workers’ strike began on October 17. The new deal includes pay hikes, benefits that could help close the gap in cost of living, lower workloads, and other job protections.
What is the Target Price for MGM Stock?
Overall, the Street has a Strong Buy consensus rating on MGM Resorts. Furthermore, the average MGM price target of $54.64 per share implies a substantial 37.3% potential upside.
Despite recent challenges, shares of the company have gained nearly 12.3% over the past month. Additionally, the stock continues to offer multiple positives for investors, given its robust property portfolio and attractive valuation metrics.
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