is getting a one percent interest<\/a> in the new VICI.<\/p>\nThose transactions make MGM a \u201ccleaner, more simplified organization, with a more attractive capital structure,\u201d said Chaiken.<\/p>\n
Options for Cash, Limited Macau Impact<\/h2>\n
As Chaiken notes, MGM could buyback a significant chunk of its $21.57 billion in market capitalization with its $9 billion in cash. But it’s unlikely the company will spend all of that capital on share repurchases.<\/p>\n
Should DraftKings acquire Entain and MGM is successful in retaining BetMGM, the casino company will need a technology partner for the online gaming unit, and it could acquire one with a portion of the cash stockpile\/ But it remains to be seen if that will be necessary.<\/strong><\/p>\nAs for the operator’s Macau exposure, which may appear to be a liability due to recent regulatory headwinds, Chaiken notes MGM China accounts for just $4 of MGM’s stock price.<\/p>\n","protected":false},"excerpt":{"rendered":"
MGM Resorts International (NYSE:MGM) is the largest operator on the Las Vegas Strip, and the shares are up 41 percent year-to-date. But one analyst is making the case the stock isn’t adequately appreciated. In a note to clients today, Credit Suisse analyst Benjamin Chaiken upgrades the Bellagio operator to \u201coutperform\u201d from \u201cneutral,\u201d with $68 price […]<\/p>\n","protected":false},"author":46,"featured_media":188778,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[],"acf":[],"yoast_head":"\n
MGM Stock Has Upside Potential, Deserves More Credit, Says Analyst<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n