Concerns Over Royalty Fees: Investors are worried about the increased royalty fee ratio paid to MGM CHINA's US parent company, which may negatively affect the Group's EBITDA and free cash flow.
Stock Price Impact: Following the announcement regarding royalty fees, MGM CHINA's share price fell by approximately 19%, leading to a projected PE ratio of around 8x for FY2026, below the industry average of 11-12x.
Goldman Sachs Report: A research report from Goldman Sachs highlighted these concerns and the implications for GGR market share performance from November to December 2025.
M Stanley's Position: M Stanley views the current stock price as attractive despite the recent correction, maintaining a Buy rating with a target price of $18.4.
Wall Street analysts forecast 02282 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 02282 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast 02282 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 02282 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
0 Hold
0 Sell
Current: 12.620
Low
Averages
High
Current: 12.620
Low
Averages
High
Goldman Sachs
Goldman Sachs
Buy
maintain
$18.4
Al Analysis
2026-01-08
Reason
Goldman Sachs
Goldman Sachs
Price Target
$18.4
Al Analysis
2026-01-08
maintain
Buy
Reason
The analyst rating from Goldman Sachs is influenced by concerns regarding the increased royalty fee ratio paid to the US parent company, which could negatively impact MGM CHINA's EBITDA and free cash flow. Despite these concerns, CLSA views the current price level as attractive, believing that the recent stock price correction is overdone. They maintain a "Buy" rating with a target price of $18.4, indicating confidence in the stock's potential despite the recent downturn.
Jefferies
Jefferies
maintain
$19
2025-12-31
Reason
Jefferies
Jefferies
Price Target
$19
2025-12-31
maintain
Reason
The analyst rating from Jefferies for MGM CHINA is a "Buy" with a target price of $19. The reasoning behind this rating is based on the company's finalized brand licensing agreement with its parent company, MGM Resorts International. Although the broker anticipates that the increase in brand licensing fees will lead to a 6% decrease in MGM CHINA's 2026 adjusted EBITDA and a 10% drop in net profit, they still see potential in the stock. The report also notes that if the company maintains a 50% dividend payout ratio, the decrease in earnings could lead to a review of the dividend policy, but this does not deter the overall positive outlook.
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Morgan Stanley
Morgan Stanley
maintain
2025-12-02
Reason
Morgan Stanley
Morgan Stanley
Price Target
2025-12-02
maintain
Reason
The analyst rating for MGM CHINA as Overweight by Morgan Stanley is based on the company's increased market share in October, which is viewed as beneficial for the entire sector. Additionally, the positive growth in Macau's GGR (Gross Gaming Revenue) for November, which exceeded market expectations, supports a favorable outlook for the gaming industry in the region.
CLSA
CLSA
maintain
2025-10-21
Reason
CLSA
CLSA
Price Target
2025-10-21
maintain
Reason
The analyst rating for MGM CHINA (02282.HK) is based on its revaluation potential, as indicated by low 2026 EV/EBITDA and P/E ratios compared to other Macau gaming operators. CLSA believes that this revaluation is justified after evaluating forward-looking indicators such as market share, profit margin, return on capital, and dividend payout growth. Consequently, the target price has been increased from HKD 18.3 to HKD 22.7, while maintaining an Outperform rating.
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.