MGM Resorts International (NYSE:MGM) Overview: A Deep Dive into Financials and Market Position

• MGM Resorts International (NYSE:MGM) has seen a decline in consensus price targets over the past year, with the current average at $39.
• The company boasts strong revenue and EBITDA, with a favorable price-to-earnings ratio of 10.63.
• BetMGM, MGM's online sports betting and iGaming venture, is expected to achieve a positive EBITDA in 2025, with projected net revenue of $2.4 billion to $2.5 billion.

MGM Resorts International (NYSE:MGM) is a key player in the casino, hotel, and entertainment resort industry, with a strong presence in the United States and Macau. The company offers a wide range of services, including gaming, hotel accommodations, conventions, dining, entertainment, and retail amenities. Additionally, MGM has a significant stake in the online sports betting and iGaming market through BetMGM, a joint venture with Entain.

The consensus price target for MGM's stock has seen a decline over the past year. Last month, the average price target was $39, reflecting a cautious outlook from analysts. This is a decrease from three months ago when the target was $44.5, and a significant drop from last year's $51.67. This downward trend may be influenced by various factors, including market conditions and company performance.

Despite the decline in price targets, MGM's stock has been trading within a stable range of $33.23 to $46.60. The company's strong revenue and EBITDA, along with a favorable price-to-earnings ratio of 10.63, support this stability. MGM is also pursuing global expansion, with an ambitious $8 billion project in Japan, financed through cheaper debt, indicating solid financial standing.

In the U.S. sports betting market, BetMGM holds an 11% market share, trailing behind competitors FanDuel and DraftKings, which have 35% and 32% shares, respectively. However, Citigroup has set a price target of $56 for MGM's stock, suggesting potential for growth. Citigroup also anticipates that MGM will surpass earnings estimates in its upcoming report, driven by a combination of favorable factors.

BetMGM has shown accelerating growth and improved performance metrics throughout 2024, thanks to its leading iGaming offerings and enhanced sports products. The company expects to achieve a positive EBITDA in 2025, with projected net revenue ranging from $2.4 billion to $2.5 billion. BetMGM remains confident in its pathway to achieving $500 million in EBITDA, supported by scale, revenue growth, and operational leverage.