Published on: April 30, 2026, 01:09h.
Updated on: April 30, 2026, 01:09h.
- Speculated acquisition price for Caesars suggests MGM’s value could be $60 per share
- This represents an approximate 50% discount from its current trading price
- Estimate does not factor in potential proceeds from Japan’s casino market
Recent market speculation surrounding the potential acquisition price of Caesars Entertainment (NASDAQ: CZR) hints that rival MGM Resorts International (NYSE: MGM) is currently undervalued relative to its actual worth.
In a recent analysis for their clients, Texas Capital analyst David Bain indicates that the acquisition rumors concerning Caesars could act as a significant driver for MGM’s stock price. Given that both entities hold substantial shares of the Las Vegas Strip market, with MGM being the larger player, this speculation seems validated.
Bain notes, “CZR’s rumored M&A valuation suggests a $60 per share valuation for MGM,” while maintaining a target price of $56 for MGM shares.
However, Bain has not clarified the exact acquisition price for Caesars that leads to the projection of MGM being valued at $60 per share. Current reports indicate that Tilman Fertitta has proposed offers ranging between $32 to $34 per share, while activist investor Carl Icahn is rumored to have made an offer at $33 per share.
MGM Stock Appears Significantly Underpriced
Disregarding the speculative elements surrounding Caesars and assuming Bain’s valuation of MGM holds true at $60 per share, it implies that MGM’s shares could be undervalued by around 50%, corroborating sentiments among some major investors that the casino operator’s stock is considerably cheap. Yet, there are additional factors to consider.
Bain recognizes that his $60 estimate does not consider other future projects like MGM Osaka, which is set to open in 2030. He assesses that Japan’s inaugural casino resort could add an extra $9 per share to MGM’s valuation, suggesting a potential stock price of $69. For MGM to reach $69 from current trading levels, it would require a rise of over 72%. MGM’s management appears to concur with this assessment; they continue to be active buyers of their own stock.
“MGM repurchased approximately 2.2 million shares for $90 million during the first quarter of 2026. Management indicated that the recent sale of Northfield Park provides them with the capacity for more aggressive buybacks at prevailing share price levels than in the first quarter. Over the past five years, MGM has decreased its total share count by nearly 50%,” Bain states.
Discussion on BetMGM
One of the factors contributing to MGM’s perceived undervaluation could be its lack of full ownership of BetMGM. This online gambling platform operates as a 50/50 joint venture with gaming company Entain Plc (OTC: GMVHY). As BetMGM’s financial performance improves, MGM’s potential for complete ownership could greatly enhance its value.
There has been recent chatter regarding Entain’s “optionality” concerning BetMGM, though no concrete developments have surfaced. Bain notes that “the potential value unlocking of BetMGM/omnichannel strategies” could serve as a catalyst for MGM’s stock movement, although he refrains from providing further details on this topic.