Shares of MGM Resorts International (NYSE: MGM) jumped nearly 10% on Tuesday after Credit Suisse upgraded the casino stock despite an over 40% increase year-to-date.
In a note this morning, analyst Benjamin Chalken rated MGM Resorts at “outperform” with a price target of $68 per share that represents a 40% upside from here. Previously, Chalken had a PT of a sharply lower $33 on the stock.
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The analyst cited MGM’s recent transformation comprising four major transactions, improving sentiment, and gaming industry upside for the upgrade.
Wright agrees with the bullish call on CNBC’s ‘Halftime Report’
On CNBC’s “Halftime Report”, Degas Wright of Decatur Capital Management, who owns the stock, agreed with the bullish call and said:
MGM has a light asset model that’s doing really well. Plus, it owns 50% of the rooms in Las Vegas and has limited exposure to Macau. On top of that, there’s BetMGM – a growth engine for the company. So, positives all the way around. We like the stock; it’s one to hold.
Pete Najarian sees MGM as a better pick than LVS and WYNN
Pete Najarian also echoed the same on “Halftime Report”. The optionMONSTER co-founder sees MGM Resorts as a better pick than peers Las Vegas Sands or Wynn Resorts, both of which depend more on Macau and so, are more prone to downside on regulatory issues.
On the flip side, however, Hightower’s Stephanie Link likes Wynn Resorts better than MGM as it’s tanked 35% since mid-March making up for a good buying opportunity, versus MGM that has already had a good run this year.
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