What investors need to know about the Macau casino sector
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 01 2025
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Source: SeekingAlpha
Macau Casino Revenue Decline: Macau's casino sector experienced a 5.6% year-over-year decline in gross gaming revenue (GGR) for January, totaling 18.25 billion patacas ($2.3 billion), marking the second consecutive month of decreasing GGR and falling short of expectations.
Economic Diversification Efforts: The Macau government is focusing on increasing non-gaming revenue to reduce reliance on gambling, aiming for non-gaming industries to represent 60% of GDP by 2028, while casinos are required to invest in non-gaming attractions as part of their concession agreements.
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
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.
