MGM Resorts (MGM) PT Lowered to $45 at Stifel

Stifel analyst Steven Wieczynski lowered the price target on MGM Resorts (NYSE: MGM) to $45.00 (from $47.00) while maintaining a Buy rating.

The analyst comments "Looks like we’re in for more pain tomorrow. While MGM’s Vegas results were nothing to write home about, the summer “weakness” should have been well telegraphed by now and properly priced into shares. Guess that’s not the case though. While forward leisure demand looks encouraging, investors aren’t really going to care until we have multiple months/quarters before feeling comfortable about long-term Vegas leisure demand. Having said that, based on where MGM shares are trading, you would think we are at the height of COVID versus what we think is more just a short-term correction in that market. While things might not improve overnight, we believe for the patient investor, owning shares of MGM at current levels is an overly compelling risk/reward. What we think is getting overlooked is MGM’s diverse operating platform. While Vegas is “soft”, Regionals/Macau/Digital all are strong/healthy and should/will provide a cushion until Vegas improves."

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