Truist Cuts MGM Resorts Rating to Hold, Lowers Price Target to $38
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Rating Downgrade: Truist Securities has downgraded MGM Resorts' rating from Buy to Hold primarily due to concerns about trends in the Las Vegas market, with analysts noting that leisure consumer malaise could impact 2026 performance expectations.
- EBITDA Contraction Forecast: Analysts expect Las Vegas Strip EBITDA to contract by 1% year-over-year in 2026, indicating that the ongoing leisure consumer weakness may persist, although there is potential for recovery in the future.
- Price Target Adjustment: Truist has lowered its price target for MGM from $45 to $38, reflecting a cautious outlook on market performance and suggesting that the stock may face downward pressure in the near term.
- Stock Price Movement: MGM Resorts shares fell by 1.5% in Tuesday afternoon trading, indicating market reaction to the rating downgrade and price target adjustment, prompting investors to monitor future market dynamics.
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 40.78 USD with a low forecast of 29.00 USD and a high forecast of 52.00 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.
12 Analyst Rating
6 Buy
5 Hold
1 Sell
Moderate Buy
Current: 34.820
Low
29.00
Averages
40.78
High
52.00
Current: 34.820
Low
29.00
Averages
40.78
High
52.00
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.
