shares were lower on Monday following a downgrade from Goldman Sachs, which warns that bulls are making a bad bet when it comes to the casino operator.
Analyst Stephen Grambling cut his rating on MGM (ticker MGM) to Sell from Hold, although he raised his price target by $3, to $20, to account for his updated estimates across the gaming sector. He is concerned about a slower recovery for Las Vegas, “which will drive downside to consensus estimates and fundamental underperformance relative to peers” and likely weigh on the stock’s multiple.
MGM stock is down nearly 32% year to date, but the shares have rallied some 44% since the beginning of last month, ahead of peers and the
Grambling calls the rally unwarranted, give that MGM has lower exposure to regional gambling hubs—which have