MGM Resorts (MGM) May Turn New Acquisition To Higher Than Expected Earnings  

MGM Resorts International was up as much as 8% on Tuesday after an analyst upgraded the stock to outperform from neutral. The company is in a good position heading into the holiday season. MGM stock is up 9% recently rising to $48.94. During the height of the pandemic, many resorts struggled to recover. But as the business has started to return, MGM has made a string of acquisitions. It plans to acquire Cosmopolitan resort In Las Vegas for about $1.6 billion. The Cosmopolitan is a well-located hotel that will appeal to both the younger crowd and the older crowd. It’s a great addition to MGM’s existing properties in Las Vegas.

During the pandemic, it lost over 80% of its value. Despite the rally, it is still trading near its target price. Benjamin Chaiken of Credit Suisse Group thinks that MGM’s transformation has been well-documented, but he doesn’t believe the market is giving enough credit to the company’s achievements. MGM Resorts can turn its recent acquisition spree into more robust earnings.

Anthony Gonzales

Biotech, Tech, and Crypto reporterAnthony Gonzales brings 3 years of experience in helping grassroots, mid-sized organizations and large institutions strengthen their management and resource generating capacities and effectively plan for the future. He is also a mentor and professional advisor to artists working in all disciplines. He is the gold medalist from St. Marco University of Science and Technology in the Bachelors of Financial Management as well.