MGM Resorts International
MGM: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $88.00 | Jqqjn | Hbrmxlqll |
MGM's Macao Performing Well as the Region's Demand Recovers
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Business Strategy and Outlook
No-moat MGM Resorts' Macao's (17% of 2023 EBITDAR) sales rebounded sharply in 2023 (reaching back above 2019's level in the second quarter), after the Chinese government removed covid 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 US. 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.