Published on: April 7, 2026, 11:26h.
Updated on: April 7, 2026, 11:26h.
- Growth on the Las Vegas Strip expected to unfold in the latter half of the year
- Such growth can occur without a significant return of price-sensitive customers
- Analyst notes that MGM’s online, regional casino, and Macau sectors are robust
The stock for MGM Resorts International (NYSE: MGM) has risen by nearly 4% this year, suggesting that investors are content with a gradual growth forecast for the Las Vegas Strip.
Investors should prepare for this outlook as Stifel analyst Steven Wieczynski highlights in a recent report that growth in earnings before interest, taxes, depreciation, and amortization (EBITDA) for the Strip is expected to be a theme for the latter half of the year. MGM has introduced value packages targeting budget-conscious consumers likely to stay at properties such as Excalibur and Luxor, which together account for 6% of the operator’s EBITDA. Even if this strategy doesn’t yield immediate returns, MGM can still create growth for the Strip in the second half, potentially aiding the stock.
“Even if the lower-tier customer doesn’t return in full force, we still see a pathway to growth on the Strip in the second half of 2026,” Wieczynski states. “While improvements may not be rapid, we believe for the patient investor, acquiring MGM shares at current prices represents an appealing risk/reward scenario. The market has already considered potential leisure ‘weakness’ on the Strip, and our forward indicators remain positive, even if the booking window is somewhat limited as we look toward the latter half of 2026.”
He maintains a “buy” rating for the stock, while adjusting his price target down to $48 from $50. The analyst believes that any sign of recovery in leisure travel to the Las Vegas Strip could significantly boost MGM shares.
Signs Indicating Stability in Las Vegas
In favorable news for MGM stocks, the conditions on the Strip are not worsening. In fact, they appear stable, which may set the stage for a rebound in the second half of the year.
Wieczynski notes that leisure demand in Las Vegas is stable, with no indications of substantial consumer spending declines during weekends or significant events. MGM stands as the largest operator on the Strip, controlling 36,645 hotel rooms—substantially more than its closest competitor, Caesars Entertainment (NASDAQ: CZR), which manages 23,150 rooms.
Concerning MGM’s recent promotional campaigns targeting cost-conscious customers, these could yield positive outcomes, but it will take some time. For the moment, investors seem to be underestimating the potential benefits from the company’s renewed focus on the value segment.
“MGM has ramped up marketing efforts (like their bundling packages) aimed at lower-end customers, and we anticipate this will positively impact the market, although not until the latter half of 2026,” Wieczynski adds. “Considering the current trading range of MGM shares, we don’t believe the market has accounted for any meaningful contribution from lower to mid-tier leisure visitors for the rest of 2026, and likely even into 2027.”
MGM Offers More Than Just a Las Vegas Investment
One attractive aspect of MGM stock is that it isn’t solely focused on Las Vegas. The company’s regional casino operations remain strong. BetMGM, in which MGM holds a 50% stake, just recorded its first profitable year in 2025, with projections for 2027 EBITDA reaching $500 million, while MGM China is also showcasing impressive performance.
Wieczynski contends that this diversity serves as a cushion for the overall MGM investment strategy until the Las Vegas sector recovers, although some investors may overlook this safety net.
“While growth in MGM’s core physical business is expected to be modest, we believe that positive trends in Macau, the digital space, and stronger-than-anticipated group and convention business in Las Vegas will justify a higher valuation multiple for MGM shares compared to current levels,” concludes the analyst.