In a note to investors discussing the gaming market in Macau, the analyst firm lowered its price target for MGM Resorts to $24 from $25, reiterating its "positive" rating, according to Benzinga.
Susquehanna analyst Rachel Rothman described the Macau gaming market as being "at a crossroads" due to concerns about table count, gaming revenue declines, and rumors of a complete smoking ban." Rothman also noted that June is the first month of negative year over year gaming growth in Macau though some investors are optimistic that one year headlines could signal an "inflection" in the industry.
"We continue to believe that Macau will eventually turn, but we remain cautious in the near term given the small sample size, the potential for a full smoking ban, and no signs of a significant easing in the anti-corruption campaign," Rothman said. "We encourage investors interested in Macau to focus on LVS and MGM given greater downside protection."
Separately, TheStreet Ratings team rates MGM RESORTS INTERNATIONAL as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate MGM RESORTS INTERNATIONAL (MGM) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself."