Melco Resorts (MLCO) Hits Oversold Territory with RSI at 29.2
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 30 2025
0mins
Source: NASDAQ.COM
- Oversold Signal: Melco Resorts (MLCO) shares have fallen to $7.60, with an RSI of 29.2, indicating that the recent heavy selling may be nearing exhaustion, prompting investors to consider potential buying opportunities.
- Historical Performance Comparison: MLCO's 52-week low is $4.55 and high is $10.15, suggesting a significant gap between the current price and the high, reflecting market caution regarding its future performance.
- Market Sentiment Analysis: Compared to the S&P 500 ETF (SPY) with an RSI of 55.2, MLCO's oversold condition may attract investors looking for rebound opportunities, potentially driving future buying activity.
- Investor Focus: In the current market environment, MLCO's oversold status may lead investors to reassess its value, especially considering its historical volatility and potential for rebound.
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Analyst Views on MLCO
Wall Street analysts forecast MLCO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MLCO is 11.21 USD with a low forecast of 9.50 USD and a high forecast of 12.55 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.
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 6.280
Low
9.50
Averages
11.21
High
12.55
Current: 6.280
Low
9.50
Averages
11.21
High
12.55
About MLCO
Melco Resorts & Entertainment Ltd is a Company engaged in the development and operation of resort facilities. The Company is engaged in the operation of casinos in Macau and Philippines. The Company operates three casinos based in Macau, namely, City of Dreams, Altira Macau and Studio City. In addition, the Company is engaged in the operation of hotels in Macau and Manila.
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.
Melco Resorts (MLCO) Initiated with Buy Rating and $11.50 Price Target
- Clear Market Opportunities: Texas Capital Securities has initiated a Buy rating on Melco Resorts (MLCO), with analysts noting that its unique non-gaming offerings and premium mass market focus align well with record Macau visitation, indicating clearer market opportunities in the new Macau setup.
- Risk Mitigation: Analysts highlighted that the near elimination of junkets in Macau reduces market volatility and related risks, while also providing uncaptured GGR margin opportunities, which are expected to enhance the company's profitability.
- Increased Operating Expenses: With rising operating expenses related to non-gaming activities and events, visitation growth and diversification of gaming revenue are anticipated, leading to absolute EBITDA gains and strengthening the company's competitive position.
- Favorable Investment Timing: Texas Capital views the recent sell-off in MLCO shares as overdone, presenting a strong entry point for investors, with a price target of $11.50 indicating an upside potential of over 80%.
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S&P Global Ratings Projects Macau Casino Sector Growth to Slow to 3%-7% by 2026
- Maturity Phase: S&P Global anticipates that the Macau casino sector will transition to a maturity phase by 2026, with overall revenue growth slowing to 3%-7%, yet steady operations and selective market share gains will still support modest upside potential.
- Revenue Growth Forecast: The total Gross Gaming Revenue (GGR) for Macau is projected to increase by 3%-7% year-on-year in 2026, down from 9.1% in 2025, primarily due to near-full hotel occupancy and limited new capacity.
- Market Share Dynamics: Las Vegas Sands and MGM are expected to gain market share in the mass market segment, benefiting from the opening of new hotels and a recovery in market demand, driving accelerated EBITDA growth.
- Investor Sentiment Analysis: Jefferies analysts believe that current valuations of Macau casino stocks, ranging from 8-10X EBITDA, are undemanding, particularly highlighting WYNN and LVS as favorites in the U.S. market, indicating potential for future upside.
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