Skip to main content

Market Overview

MGM Resorts, Caesars Entertainment Stocks Upgrade: What You Need To Know

Share:
MGM Resorts, Caesars Entertainment Stocks Upgrade: What You Need To Know

The Las Vegas gaming market seems to be delivering a faster- and stronger-than-expected recovery, with “especially positive booking trends," according to Morgan Stanley.

The Gaming Market Analyst: Thomas Allen upgraded the ratings for MGM Resorts International (NYSE: MGM) and Caesars Entertainment Inc (NASDAQ: CZR) to Overweight, while raising the price targets from $34 to $45 and from $92 to $113, respectively.

The Gaming Market Thesis: A visit to Vegas last week revealed that the market was busy even midweek, with the South Strip, which is where the properties of MGM Resorts International and Caesars Entertainment are located, busier than the North Strip, Allen said in the upgrade note.

“The market is back to running at ~95% occupancy on weekends, with the operators able to push room rates higher,” the analyst wrote.

“A number of mkt participants highlighted May as when they expect current gov’t restrictions to be relieved,” he said, while adding that performance through summer should “improve materially.”

"Notably, consensus is looking for 2Q21 Vegas occupancy of just 60%, despite March appearing to be at 63-70% already and trends improving sequentially,” Allen said. “We believe consensus is grossly underestimating the earnings power of companies exposed."

CZR Price Action: Shares are up 4.68% to $93.10 Monday morning

MGM Price Action: Shares are up 7.28$ to $42.50 Monday morning.

(Photo by Michał Parzuchowski on Unsplash)

 

Related Articles (MGM + CZR)

View Comments and Join the Discussion!

Posted-In: gambling gaming Morgan Stanley Thomas AllenAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
FIBKStephens & Co.Downgrades
LEAFCanaccord GenuityDowngrades8.5
AGMSidoti & Co.Downgrades115.0
KEXGabelli & Co.Downgrades
OCGNCantor FitzgeraldDowngrades11.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com