UPDATE: Deutsche Bank Upgrades MGM Resorts International

MGM Resorts International MGM was upgraded Tuesday by Deutsche Bank from Hold to Buy with the price target increased from $29 to $30.

Analyst Carlo Santarelli noted in a report that the stock’s recent pullback represents an “optimal entry point” for investors seeking a “multi-year long trade.”

Santarelli explained that he thinks the risk-return at the current levels is “compelling despite the concerns over Macau growth in the near to medium term. In our view, and based on our below Consensus MGM Macau forecasts, we think the upside in Las Vegas has been overshadowed by the negative revisions in Macau to which MGM is less sensitive than peers.”

The report also mentioned improving fundamentals on the Las Vegas Strip with “significant upward trajectory potential” for asset recovery. Returns on regional developments are “largely non-existent at current levels, while the Cotai project has been significantly discounted.”

MGM Resorts International closed at $22.18 on Monday.