Stifel Downgrades MGM Resorts (MGM) to Hold

Stifel analyst Steven M. Wieczynski downgraded MGM Resorts (NYSE: MGM) from Buy to Hold with a price target of $49.00 (from $48.00).

The analyst comments: “We are downgrading MGM shares from Buy to Hold, reflecting the stock’s recent move on the announcement of an offer from People Inc. (formerly IAC) to take the company private at $48.30/share (~7.7x our 2027E EBITDAR) coupled with the remaining uncertainty around the prospective deal. In our opinion, there appears to be less internal support for this transaction versus the recently announced CZR transaction, and investors clearly believe the initial bid undervalues the company as the shares now trade above the offer price. While many questions remain, the most important for us centers around the opportunity for higher bids to come in and what the MGM Board would be willing to accept. In the face of this uncertainty and with shares trading at a premium to the offer price, we are moving to the sidelines as we identify meaningful risk that the current offer is terminated and shares re-rate lower.”

For an analyst ratings summary and ratings history on MGM Resorts click here. For more ratings news on MGM Resorts click here.

Shares of MGM Resorts closed at $48.97 yesterday.

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