MGM Resorts Analyst Turns Bullish, Upgrades Casino Stock Despite Challenging 2023

Shares of MGM Resorts International (NYSE: MGM) continued their uptrend through November in early trading on Monday.

Although macro uncertainties may continue into 2023, the Strip’s strong event calendar could drive the company’s outperformance, according to Truist Securities.

The Analyst: Barry Jonas upgraded the rating for MGM Resorts from Hold to Buy, while raising the price target from $40 to $50.

Check out other analyst stock ratings.

The Thesis: The proprietary room survey indicates strong year-on-year growth in the fourth quarter, Jonas said in the upgrade note.

MGM Resorts is better positioned now than it was during the 2008 crisis, the analyst mentioned. “We see macro headwinds offset by a solid event calendar, return of the midweek traveler, and a more diversified market/attractions,” he added.

Other casino stocks with Macau exposure may also benefit, despite uncertainty in 2023. With China's loosening Covid-19 restrictions, it's worth keeping an eye on Macau casino stocks that trade in the U.S., including:

• Las Vegas Sands Corp. (NYSE: LVS)
• Wynn Resorts, Limited (NASDAQ: WYNN)
• Melco Resorts & Entertainment Ltd (NASDAQ: MLCO).

See Also: Market Volatility Eases Slightly Following Hopes Of China COVID-19 Policy Change

MGM Price Action: Shares of MGM Resorts International rose by 3.18% to $38.26 at the time of publication Monday.