MGM Resorts International
MGM: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $66.00 | Nycs | Pyzrsrwh |
MGM Seeing Demand in Vegas and Macao, With a Japan Resort on the Horizon
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Business Strategy and Outlook
No-moat MGM Resorts' Macao (22% of prepandemic 2019 EBITDAR) sales are set to rebound sharply in 2023, after the Chinese government removed COVID-19 restrictions on Jan. 8, 2023. And although Macao faces elevated operational risk from government oversight, the company remains positioned for the attractive long-term growth opportunities in the region. Further, MGM's leading omnichannel presence in the U.S. should aid it in the sports betting and iGaming growth markets. Also, we expect the company to have a Japanese integrated resort in 2030, accounting for an estimated 5% of total EBITDAR that year.