Analyst Stephen Grambling from Morgan Stanley maintained a Hold rating on MGM Resorts and keeping the price target at $43.00.
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Stephen Grambling has given his Hold rating due to a combination of factors surrounding MGM Resorts’ recent strategic decisions. The withdrawal from the New York downstate casino license process is seen as a positive move, providing MGM with greater capital allocation flexibility. This decision potentially saves MGM significant capital expenditure that would have been required for the license fee and construction costs.
Additionally, this move reflects a cautious stance towards the competitive landscape and the potential for iGaming legalization in New York, which could alter market dynamics. While the withdrawal frees up resources, it also indicates a strategic pivot that may not immediately translate into growth, justifying the Hold rating. Furthermore, MGM’s involvement in the Osaka integrated resort project suggests a focus on international expansion, which may carry its own set of risks and opportunities.
In another report released on October 1, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $37.00 price target.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MGM in relation to earlier this year.