MGM Resorts International

MGM: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$54.00	Krjhp	Fwjxmddv

No-Moat MGM’s Domestic Omnichannel Business Thriving; Shares Undervalued

Dan Wasiolek

Feb 9, 2023

We plan to lift no-moat MGM’s $48 fair value estimate by around a low-single-digit percentage to account for stronger Las Vegas and digital results, mitigated by a push out of its Japan resort opening to 2029 from 2027 (due to a slower-than-expected regulatory process). Meanwhile, we believe MGM’s Macao business is recovering toward our 50% of 2019’s level in 2023. We see shares as slightly undervalued.

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