MGM Resorts (MGM) Stock Forecast & Price Target

MGM Resorts International has demonstrated strong financial performance with EBITDAR growth of 31% year-over-year, driven by a 21% increase in net revenues and an improvement in margins by 190 basis points. The company's momentum also extends to its digital operations, which reported a significant 35% revenue growth due to organic expansion. Additionally, management anticipates continued stability and growth into 2026, supported by a robust booking trend and promising visitation patterns during key holiday periods, despite some challenges in lower-end properties.

MGM Resorts International reported a -2% EBITDAR miss primarily due to weakness on the Las Vegas Strip, coupled with regional operations slightly off target, resulting in a year-over-year decline in net revenues of -7% or $147 million. Factors contributing to the EBITDA weakness included a significant drop in average daily rates (ADRs) and occupancy, which accounted for a $78 million loss, alongside increased costs related to renovations and insurance accruals. Additionally, softness in the low-end market segments was highlighted, specifically impacting the Luxor and Excalibur properties, leading to lowered 2025 and 2026 EBITDAR estimates by -1% and -2%, respectively.