Mizuho has raised its price target on MGM Resorts (NYSE:MGM) to $62 from $58, maintaining an Outperform rating, which implies nearly 100% upside from its current trading price. This upgrade occurs despite MGM reporting Q3 2025 EPS of $0.24, significantly missing the $0.39 expectation, and Las Vegas EBITDA of $601 million falling short of Mizuho's $630 million projection. However, the company's revenue slightly exceeded forecasts at $4.3 billion, and a net $10 million benefit from business interruption insurance partially offset the earnings disappointment.
Mizuho has raised its price target on MGM Resorts (NYSE:MGM) to $62.00 from $58.00, maintaining an Outperform rating, which implies a substantial nearly 100% upside from the current trading price of $31.21. This upgrade comes despite recent operational shortfalls, indicating a strong long-term conviction from the firm. InvestingPro data also suggests MGM is currently undervalued, with analyst targets ranging from $32 to $58. MGM reported a significant Q3 2025 EPS miss, posting $0.24 against an anticipated $0.39, a 38.46% negative surprise. Las Vegas EBITDA also fell short, reaching $601 million compared to Mizuho's already reduced projection of $630 million, highlighting operational challenges. However, the company's revenue slightly exceeded expectations at $4.3 billion versus a $4.25 billion forecast, providing a positive counterpoint. A net $10 million benefit from business interruption insurance, after accounting for one-time compensation headwinds, partially mitigated the earnings disappointment. This combination of a bullish analyst outlook, despite mixed recent performance, suggests a belief in future operational improvements or market re-rating. The discrepancy between strong revenue and weaker profitability warrants close scrutiny of cost structures and margin trends.
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mildly positive
Sentiment Score
0.30
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