Sports Betting: MGM Resorts International (NYSE: MGM) Stock Could Rebound Despite Cyberattack

Posted on: October 20, 2023, 04:41h. Last updated on: October 20, 2023, 04:41h.

MGM Stock Shows Potential for Rebound Post-Cyberattack

Despite a recent cyberattack on MGM Resorts International (NYSE: MGM) that temporarily affected its casino hotels, experts remain positive on the company’s future. Analyst Carlo Santarelli from Deutsche Bank believes the stock is undervalued, with a price forecast suggesting a potential upside of 58.8%.

While some market participants have adjusted their forecasts to consider the impact of the cyberattack, the overall sentiment is that MGM stock has not yet reflected its true potential.

The upcoming announcement of MGM’s third-quarter results is highly anticipated, as it is expected to reaffirm the strength of the company’s high-end properties, such as Bellagio and Cosmopolitan. Furthermore, with events like the Las Vegas Grand Prix in November and the Super Bowl in February, Las Vegas Strip occupancy is expected to be high, benefiting MGM’s properties.

The cyberattack had significant consequences for both guests and employees of MGM Resorts, including stolen personal data. However, the company has expressed its commitment to moving forward and the potential for a rebound in its stock is promising.

Carlo Santarelli concludes, “Our $56 price target is based on a sum-of-the-parts approach, valuing MGM’s domestic assets and royalty fees associated with MGM Macau at a blended multiple of 6.5x our 2025 adjusted EBITDAR estimate.”