MGM Resorts stock surged 7.7% this morning after two major Wall Street firms issued simultaneous upgrades. JPMorgan raised its rating to Overweight with a $46 price target, while Truist Securities upgraded to Buy with a $55 target.
JPMorgan cited growing conviction that Las Vegas Strip EBITDAR estimates have bottomed, with growth expected from easier comparisons and resilient U.S. leisure demand. Truist's upgrade was based on its consumer perception survey and Strip room rate survey, which showed increased confidence in a positive MGM Strip inflection.
Supporting factors include MGM's Q2 2026 room rates tracking up 1% year-over-year, strong group and event calendar, and easier summer comparisons. MGM reported Q1 2026 EPS of $0.49 and revenue of $4.45 billion, exceeding expectations. The company has been aggressively buying back shares.
The broader market was flat, with S&P 500 at -0.1%, confirming the move is company-specific. About 50% of Las Vegas Strip traffic comes from drive-in customers, providing resilience.
