Barclays has revised its price target for MGM Resorts (MGM, Financial), reducing it from $47 to $41, while maintaining an Overweight rating on the stock. This adjustment comes as part of the firm's first-quarter earnings preview, highlighting challenges that may impact the lodging sector.
According to Barclays, the overall outlook for lodging companies is expected to decline due to rising headwinds. Despite this, the firm notes that MGM Resorts' robust fee models are likely to support continued profitability, even as they lower their revenue per available room (RevPAR) estimates across the board.
As investors anticipate the forthcoming earnings report, Barclays' analysis suggests that while there may be immediate pressure on MGM's revenues, the company's strong operational strategies could sustain its financial performance in the near term.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for MGM Resorts International (MGM, Financial) is $47.44 with a high estimate of $60.00 and a low estimate of $35.00. The average target implies an upside of 64.03% from the current price of $28.92. More detailed estimate data can be found on the MGM Resorts International (MGM) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, MGM Resorts International's (MGM, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for MGM Resorts International (MGM, Financial) in one year is $65.17, suggesting a upside of 125.35% from the current price of $28.92. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the MGM Resorts International (MGM) Summary page.
