BK Asset Management’s Boris Schlossberg is hopeful that MGM Resorts International (NYSE: MGM) could climb back to its all-time high of $50 a share over the next twelve months.
Schlossberg’s bull case for MGM stock
His positive view on the stock comes a day after MGM reported market-beating results for its fiscal Q1. Making a case for MGM this afternoon on CNBC’s “Power Lunch”, the expert said:
Vegas is one of the most desirable destinations at present along with Orlando. I’m sure many Americans will go there for conventions and for fun. MGM is benefitting from this resurgence of Vegas and there’s a reasonable chance that it goes to $50.
Schlossberg, however, warned that MGM Resorts will have to execute “perfectly” in order to unlock that upside in its stock that currently trades at a price-to-earnings ratio of 16.93.
JPMorgan resumes MGM at ‘overweight’
Also on Tuesday, JPMorgan resumed coverage of the hospitality and entertainment company with an “overweight” rating. Analyst Joseph Greff announced a $53 price target on the stock that represents a 30% upside from here.
A 73% year-over-year increase in MGM Resorts’ Q1 revenue was particularly impressive considering the omicron variant weighed on tourism in the first few weeks of 2022.
The U.S. company is also committed to expanding its footprint internationally. To that end, it has made a tender for buy LeoVegas Ab – a Sweden-based mobile gaming company. The proposal is for $607 million approximately.
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