Macau Momentum Drives MGM Stock Higher with Wall Street's Earnings Praise
Macau Momentum Drives MGM St...
Subscribe to Newsletter

Macau Momentum Drives MGM Stock Higher with Wall Street's Earnings Praise

2 May 2024
2336
1 min.
3
Macau Momentum Drives MGM Stock Higher with Wall Street's Earnings Praise

MGM Resorts Surges in Q1

MGM Resorts International reported a strong first-quarter performance, with adjusted earnings of 74 cents per share, surpassing analysts' expectations of 56 cents per share. Net revenue grew up 13% to $4.4 billion, outpacing the consensus estimate of $4.24 billion.

Factors Driving Growth

Management attributed this outperformance to robust demand at high-end Las Vegas properties and a remarkable 71% revenue growth at MGM China, reaching $1.1 billion for the quarter. The company continues to benefit from eased travel restrictions related to COVID-19.

Analyst Assessments

According to J.P. Morgan's Joseph Greff, MGM's momentum in Macau is expected to drive property-level EBITDA higher, projecting $1.17 billion for 2024, up from the current Wall Street estimate of $1 billion. Greff reaffirmed an Overweight rating on the stock and raised the price target to $57 from $54, implying a significant 43% gain.

Mizuho analyst Ben Chaiken emphasized that investors are undervaluing MGM's stock considering its compelling fundamentals and potential for improved free cash flow, which currently stands at $377 million. Chaiken reiterated a Buy rating and raised the price target to $62.

Market Reaction

Following the earnings report and analysts' comments, MGM's stock surged 6.2% to $42.22 in premarket trading on Thursday.

Conclusion

Despite a strong Q1 performance and bullish analyst sentiments, MGM Resorts International continues to be undervalued according to market analysts, signaling potential growth opportunities for investors.

Companies3 in the news

Section:
Source foto:
flickr.com
Rating companies
Instagram
15 Mention
Tesla
14 Mention
Netflix
14 Mention
JP Morgan Chase
11 Mention
Amazon
10 Mention
Ford Motor Company
10 Mention
TikTok
8 Mention
White House
7 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
8132929003
Died this year
28153385
Born this year
69262310