JPMorgan Upgrades MGM to Overweight Amid Strong Vegas Tourism
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: CNBC
MGM Resorts International's shares surged 3% as it reached a 52-week high, reflecting positive market conditions.
JPMorgan upgraded MGM from neutral to overweight, raising its 12-month price target from $41 to $46, indicating a 10% upside from the last close. This upgrade is driven by increased confidence in MGM's future growth prospects, particularly amid the recovery of Las Vegas tourism, which welcomed approximately 9.7 million tourists in April 2026, aligning with last year's trends. Analysts noted that the impact of new casino openings in Las Vegas is typically neutral to slightly positive, supporting MGM's business growth.
The upgrade reflects a strong outlook for MGM as it capitalizes on the ongoing recovery in tourism and gaming in Las Vegas, positioning itself favorably in the competitive landscape.
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Analyst Views on MGM
Wall Street analysts forecast MGM stock price to fall
14 Analyst Rating
5 Buy
7 Hold
2 Sell
Hold
Current: 42.930
Low
29.00
Averages
40.31
High
56.00
Current: 42.930
Low
29.00
Averages
40.31
High
56.00
About MGM
MGM Resorts International is a global gaming and entertainment company with national and international destinations featuring hotels and casinos, meetings and conference spaces, incredible live and theatrical entertainment experiences, and a range of restaurants, nightlife and retail offerings. Its segment includes Las Vegas Strip Resorts, Regional Operations, MGM China, and MGM Digital. Las Vegas Strip Resorts consists of casino resorts: Aria, Bellagio, The Cosmopolitan of Las Vegas, MGM Grand Las Vegas, Mandalay Bay, Luxor, New York-New York, Excalibur, and Park MGM. Regional Operations consists of various casino properties: MGM Grand Detroit in Detroit, Michigan; Beau Rivage in Biloxi, Mississippi; Gold Strike Tunica in Tunica, Borgata in Atlantic City, New Jersey; MGM National Harbor in Prince George’s County, Maryland; MGM Springfield in Springfield, Massachusetts; Empire City in Yonkers, New York, and others. MGM Digital is its online gaming portfolio which consists of LeoVegas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Segment Analysis: The slot machine segment saw a 4.1% increase in gaming win, while table and card games rose 8.3%, with baccarat gaming win surging 20%, reflecting changing consumer preferences and market vitality.
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- Stable Tourism Data: As of April 2026, Las Vegas welcomed approximately 9.7 million tourists, roughly in line with last year's trends, indicating that despite concerns over rising fuel prices, tourist traffic remains strong, thereby boosting MGM's business growth.
- Market Absorption Capacity: JPMorgan's analysis suggests that the impact of new casino openings in Las Vegas is typically neutral to slightly positive, with historical data showing that market-wide visits increase by an average of 6% following a major new property opening, alongside room revenue and gross gaming revenue growth of 11% and 8%, respectively.
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