MGM Resorts International faces headwinds in Las Vegas but shows strength in international and digital segments.
Analysts note persistent weakness in the lower-end Las Vegas market. EBITDAR declined 13% year-over-year.
Macau operations exceeded expectations by 5% with a 16% market share. This demonstrates the benefit of geographic diversification.
BetMGM offers growth potential in the digital segment. The company's physical casinos provide marketing advantages.
Withdrawal from the New York license race frees up $2.9 billion in cash flow. Leverage is expected to drop to 3.6x EBITDAR by 2026.
Stock trades at a P/E of 55.22 with a market cap of $9.82 billion. Analysts see the stock as fairly valued.
Recovery in Las Vegas is slow. Macro and political factors add uncertainty.
Share buybacks and increasing BetMGM stake are potential catalysts. Management has been aggressively buying back shares.
