MGM Resorts International (NYSE: MGM) has secured an upgraded ‘BUY’ rating from Argus Research, which sees substantial upside potential in the stock amid promising recovery trends. With a price target of $50, up from its recent closing at $40.37, analysts believe the company is well-positioned to benefit from Las Vegas casino spending, U.S. sports betting expansion, and international market growth in China and Japan.

Despite a dip in fourth-quarter earnings, MGM’s regional properties and Macau operations have shown resilience, offsetting temporary headwinds. The stock, which has ranged between $31.61 and $48.25 over the past year, is currently trading at a modest P/E ratio of 13.28, making it an attractive investment at current levels.

Let’s dive into the details of MGM’s financial outlook, growth drivers, and investment potential.

MGM Resorts’ Stock Performance and Analyst Ratings
Current Price: $40.37
Argus Target Price: $50 (23.9% upside potential)
52-Week High/Low: $48.25 / $31.61
Market Capitalization: $12.02 billion
P/E Ratio: 13.28
EPS Forecast (2025): $3.04
EPS Forecast (2026): $3.45
Argus Research’s revised price target of $50 reflects confidence in MGM’s growth trajectory as casino and sports betting revenues continue to climb.

Key Growth Drivers for MGM Resorts
1. Strengthening U.S. Casino Business
MGM’s Las Vegas Strip operations and regional casinos are bouncing back, following an adjustment from last year’s strong Formula One race revenues.

Las Vegas 4Q24 Revenue: $2.2 billion (down 6% YoY)
Regional Casino Revenue: $932 million (up from $873 million in 4Q23)
Macau Revenue: $1.0 billion (outperforming estimates)
While Las Vegas revenue took a minor hit, regional properties and MGM China are showing strong momentum.

2. Sports Betting and iGaming Expansion
MGM’s BetMGM division is rapidly expanding in the booming U.S. sports betting industry, which continues to see double-digit growth rates.

Increased market share in sports betting & iGaming
Aggressive expansion into new U.S. states
Potential international expansion, including Japan
With regulatory approvals increasing across the U.S., MGM is expected to benefit from a long-term digital gaming revolution.

3. Macau and Japan – International Growth Catalysts
MGM’s Macau operations have outperformed expectations, and the company is also eyeing expansion into Japan, a potentially multi-billion-dollar opportunity.

Macau 4Q Revenue: $1.0 billion, exceeding consensus estimates
Japan Expansion: Agreement in place for a new casino resort
These international markets are set to enhance long-term revenue stability for MGM.

Technical Analysis: Is MGM a Buy at $40.37?
1. Moving Averages and Trend Analysis
50-Day Moving Average: $38.90 (bullish crossover)
200-Day Moving Average: $37.25 (trading above long-term trend)
Relative Strength Index (RSI): 52.3 (neutral, no overbought conditions)
MGM is trading above key moving averages, signaling a potential upward trend continuation.

3. Support and Resistance Levels
Identifying key price zones for trading decisions:

Immediate Support: $38.00
Major Support: $35.50
Resistance Level 1: $42.50
Breakout Resistance: $45.00
MGM’s next test will be the $42.50 resistance—a breakout could trigger further bullish momentum.

Competitive Landscape: How MGM Stacks Up
MGM competes with major casino and hospitality giants, including Wynn Resorts (NASDAQ: WYNN) and Caesars Entertainment (NASDAQ: CZR).

MGM maintains a stronger international presence with Macau and Japan ventures, while Caesars has a stronger U.S. digital gaming presence.

Investment Outlook: Should You Buy MGM?

Argus Research's ‘BUY’ rating is backed by multiple catalysts:

✅ Las Vegas & regional casino recovery
✅ Expanding sports betting/iGaming revenue
✅ Strong performance in Macau and international growth in Japan
✅ Trading at a reasonable valuation with a P/E of 13.28
✅ Technical indicators suggest upside potential

Potential Risks:

Economic downturns affecting discretionary spending in casinos
Regulatory changes in U.S. sports betting and international gaming markets
High debt levels ($6.4 billion) and capital expenditures for expansion

Final Verdict: A Solid Buy for Long-Term Investors

MGM Resorts presents a compelling investment opportunity, with a $50 price target (+23.9% upside) and a strong growth roadmap in both U.S. and international markets.

For investors seeking exposure to casino & sports betting expansion, MGM remains an attractive long-term buy at current levels.