Macau casino revenue shines in August; dividends come back into play

Written by Emily J. Thompson, Senior Investment Analyst

MGM-1%

MLCO-0.49%

MSC+5.85%

Source: SeekingAlpha

Updated: Sep 01 2024

0mins

Source: SeekingAlpha

Macau Gaming Revenue Growth: Macau's gross gaming revenue (GGR) increased by 14.8% year-over-year in August, reaching 19.75 billion patacas ($2.5 billion), surpassing estimates and indicating a strong recovery with demand from mainland Chinese visitors despite economic pressures.
Dividend Developments: Sands China may resume dividends in 2025 due to ongoing recovery, while MGM China announced a special dividend of HKD0.353 per share, reflecting improved financial conditions following a period of halted payouts during the pandemic.

MGM

$34.075+Infinity%1D

Analyst Views on MGM

Wall Street analysts forecast MGM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MGM is 40.31 USD with a low forecast of 29.00 USD and a high forecast of 56.00 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.

14 Analyst Rating

5 Buy

7 Hold

2 Sell

Hold

Current: 34.420

Low

29.00

Averages

40.31

High

56.00

Current: 34.420

Low

29.00

Averages

40.31

High

56.00

Morgan Stanley

Equal Weight -> Underweight

downgrade

$40 -> $33

2026-01-16

Reason

Morgan Stanley

Price Target

$40 -> $33

AI Analysis

2026-01-16

downgrade

Equal Weight -> Underweight

Reason

Morgan Stanley downgraded MGM Resorts to Underweight from Equal Weight with a price target of $33, down from $40. After the recent rally, the firm downgraded several stocks and takes a more balanced view of the gaming, lodging and leisure space heading into 2026. While consumers should benefit from stimulus and businesses appear poised to increase travel, goods are getting renewed interest in a falling rate environment and the cycle is later for services, the analyst tells investors in a research note. Morgan Stanley is trimming its expose to the group. It cites weaker fundamentals in MGM's core Las Vegas segment along with "tougher sledding" in Macau for the downgrade to Underweight.

Texas Capital

David Bain

Buy

initiated

$56

2026-01-08

Reason

Texas Capital

David Bain

Price Target

$56

2026-01-08

initiated

Buy

Reason

Texas Capital analyst David Bain initiated coverage of MGM Resorts with a Buy rating and $56 price target.

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Texas Capital

Buy

initiated

$56

2026-01-08

Reason

Texas Capital

Price Target

$56

2026-01-08

initiated

Buy

Reason

Texas Capital initiated coverage of MGM Resorts with a Buy rating and $56 price target. The firm believes MGM shares will benefit from improved Las Vegas investor sentiment and fundamentals in 2026, a potential unlocking of BetMGM value and Macau momentum. The analyst also cites expectations for "significant" share repurchases and advancement toward the first integrated casino resort in Japan.

BofA

Shaun Kelley

Neutral

maintain

$35 -> $40

2026-01-05

Reason

BofA

Shaun Kelley

Price Target

$35 -> $40

2026-01-05

maintain

Neutral

Reason

BofA analyst Shaun Kelley raised the firm's price target on MGM Resorts to $40 from $35 and keeps a Neutral rating on the shares. The Gaming and Lodging group "appears to be at a crossroads" to start 2026 as the year offers easy comps, OBBB refunds and stimulus, but also still has a stretched consumer after years of inflation, the analyst tells investors. Negative estimate revisions trumped low valuations in 2024 and 2025 and the firm is "fearful this continues in 2026," the analyst added in a note on the group.

About MGM

MGM Resorts International is a global gaming and entertainment company with national and international locations featuring hotels and casinos, meetings and conference spaces, live and theatrical entertainment experiences, and a range of restaurant, nightlife and retail offerings. The Company’s segments include Las Vegas Strip Resorts, Regional Operations, MGM China, and MGM Digital. The Las Vegas Strip Resorts segment consists of Aria, Bellagio, The Cosmopolitan of Las Vegas, MGM Grand Las Vegas, Mandalay Bay, Luxor, New York-New York, Excalibur, and Park MGM. The Regional Operations segment consists of 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 is primarily comprised 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.