Susquehanna analysts upgraded MGM Resorts (NYSE:MGM) to Positive from Neutral, increasing their price target on the stock to $54 from $46. Although MGM's Q1/24 results reported yesterday were only a slight improvement over expectations, the management call highlighted a stronger focus on future growth.

Management expressed plans to invest more capital in their most profitable asset, Las Vegas, which represents about 80% of the company's value. They also mentioned strategies to optimize revenue in the softer Q2/24 environment before accelerating growth through investments and other tools. The sports calendar's seasonality and favorable comparisons in the second half of 2024, partly due to the impact of last year's cyberattack, also offer growth potential.

The analysts expect these factors to lead to significant upward revisions in estimates for 2024 and 2025. They believe that understanding the prospects for MGM hinges on recognizing the Las Vegas market's importance, and sees sufficient valuation support considering the key value drivers in Las Vegas.