Investors may want to use the pullback in MGM Resorts (MGM) as an opportunity.
After pulling back from $42 to about $38, the stock is just beginning to pivot higher. Not only is it oversold on RSI, MACD, and Williams’ %R, but JP Morgan just upgraded the stock to overweight from neutral with a $47 price target.
“Analyst Joseph Greff said the traffic at its Las Vegas casinos is improving, which will help revenue and margin improvement. He said this could drive estimates higher,” as reported by Investing.com. In addition, “The analyst pointed out that the casino operator’s digital platform had market share momentum. He also said the current valuation didn’t adequately factor in the company’s 50% share in BetMGM, MGM’s sports betting division.”
Helping, the Nevada Gaming Control Board just approved a return to 100% occupancy and no social distancing on the gaming floors located inside MGM’s Las Vegas Strip properties.
Plus, according to Casino.org, “Despite the coronavirus certainly not behind the US, casino revenue in 2021 is off to a blistering start. The $11.13 billion total GGR number matches the previous all-time record quarter set in the first three months of 2019.”