MGM Resorts price target raised to $59 from $56 at Stifel

Stifel analyst Steven Wieczynski raised the firm’s price target on MGM Resorts to $59 from $56 and keeps a Buy rating on the shares. Based on the number of inbound questions the firm has got about MGM’s “slight margin miss” in Vegas and at the regional level, the firm believes that investors “haven’t fully grasped the fact that post-COVID margins were probably not fully sustainable over the long term” and contends it is “fair to say that margin expectations remain elevated and unrealistic.” However, instead of focusing on a slight margin drop, the firm would instead be focusing on how strong MGM’s core business continues to perform and it continues to believe the MGM story remains undervalued when comparing them to certain peers, the analyst tells investors.