Analysts believe that MGM Resorts International (NYSE: MGM) equity is not getting the credit they deserve. MGM is the largest operator on the Las Vegas Strip, and like other casino facilities on the Strip, it is highly tied to recovery.
Deutsche Bank analyst Carlo Santarelli, upgraded MGM stock, lifting the price target from $42 to $54. The forecast is, however, opposite of the 23rd June close. Only Aria operator shares had an upside of nearly 37 percent among gaming equities.
On a note, Santarelli claimed that MGM stock margin recovery may extend over 30 percent. Due to the coronavirus pandemic, margin expansion has become a prominent theme among gaming company analysts. Operators have been looking for efficiencies and leaner cost models, reasonable enough when Vegas returns to its normality.
For a long, MGM has been one of Wall Street’s favorite ideas to help recover the US largest casino hub. Like Bellagio, MGM has been punished by a coronavirus pandemic and had difficulties bolstering its balance sheet.
Las Vegas is back to life, and MGM stock is rebounding. That is happening even before business convection returns. Santarelli point that Las Vegas will continue to improve as the NFL returns with fans.