MGM Resorts (MGM) Stock Forecast & Price Target

MGM Resorts International reported a notable increase in EBITDAR, with a year-over-year rise of 31% and net revenues up by 21%, which highlights the company's strong operational performance and improved margins. Additionally, management indicated strong overall bookings for 2026, with group room nights pacing up by 12% and visitation increasing by 11% during the Golden Week holiday period, signaling sustained demand and recovery in key markets. Furthermore, the company is experiencing significant growth in its digital operations, with revenue increasing by 35%, which underscores MGM's successful brand expansion and adaptation to changing market dynamics.

MGM Resorts International experienced a -2% EBITDAR miss due to weakness on the Las Vegas Strip, which was partially offset by performance in Macau and regional properties. The company reported a significant decline in net revenues of -7% year-over-year, primarily driven by a decrease in average daily rates and occupancy, particularly impacting midweek operations at lower-tier properties. Management has indicated that several factors contributed to the year-over-year EBITDA decline, including reduced business interruption proceeds, increased insurance accruals, and negative impacts from property renovations and lower table game winnings.