UBS Revises MGM Resorts Stock Target

UBS analysts have lowered the stock price target for MGM Resorts. The revision was made in connection with changes in performance expectations for the company's online betting platform, BetMGM, in the upcoming period. Analysts revised BetMGM's projected market share and earnings estimates for 2025. This update stemmed from assessments of the competitive landscape and growth pace in the sector. The reduction in the stock target reflects a more cautious outlook regarding the medium-term profitability prospects of the company's online business segment. However, it is noted that the core strength of the company's traditional casino and resort operations continues. UBS's analysis highlighted the cash consumption of online betting units across the industry and the need for consolidation in the market. These factors stand out as elements influencing BetMGM's growth roadmap. Despite revising the stock target, the financial institution did not change MGM Resorts' overall investment rating. The decision is primarily considered an operational update focused on a specific business segment. Not investment advice.