MGM Resorts Stock Jumps 9.6% After Two Analyst Upgrades

Shares of MGM Resorts International climbed sharply on Wednesday, jumping 9.62% to $42.15 and landing among the top S&P 500 gainers. The rally followed back-to-back upgrades from Truist Securities and JPMorgan Chase, with both firms pointing to strengthening demand on the Las Vegas Strip. The gains put MGM on pace for its highest close since October 29, 2024, per Dow Jones Market Data. MGM shares are now up roughly 14% year-to-date and 31% over the past 12 months.

Truist Upgrades MGM, Sees Las Vegas Strip Turning

Truist analyst Barry Jonas upgraded MGM from "hold" to "buy." He raised his price target to $55 from $42, implying 43.2% upside from the May 26 close. Jonas cited resilient second-quarter room rates as evidence of a turnaround. His firm's Las Vegas consumer surveys identified MGM Grand as the most selected hotel among respondents.

"The Strip has seen about two years of challenging growth dynamics, attributable to a host of items including reduced air capacity, value perceptions, international visitation issues, inflation, and general macro weakness," Jonas noted. He added that easing comparisons heading into Q2 2026 should allow RevPAR trends and EBITDA to improve year-on-year.

Room rates at high-end MGM properties, including the Bellagio and Cosmopolitan, are expected to grow across all three months of the quarter.

JPMorgan Upgrades MGM, Dismisses Hard Rock Threat

JPMorgan analyst Daniel Politzer also upgraded MGM, moving his rating to "overweight" from "neutral." He lifted his price target to $46 from $41. Politzer expressed growing confidence that MGM's Las Vegas Strip EBITDAR estimates have bottomed. He expects growth to strengthen on easier comparisons and continued resilience among US leisure travelers. "There's no shortage of cheap gaming stocks, but MGM is one of the few where estimates are poised to move higher," Politzer wrote. JPMorgan also flagged MGM's roughly 14% implied free cash flow yield as a valuation support. The bank said concerns about cannibalization from the planned Hard Rock opening in late 2027 may be overstated.

MGM Faces Macro Risks, but a Caesars Deal Could Lift Stock

Analysts identified broader risks alongside the positive case. Jonas flagged macroeconomic uncertainty and geopolitical volatility as the biggest threats. A prolonged conflict in Iran could keep inflation elevated and suppress consumer confidence. JPMorgan noted that inflation and fuel costs require monitoring. However, the bank pointed to MGM's value-oriented promotions and the fact that roughly 50% of Strip traffic comes from drive-in customers as demand buffers.

Jonas also highlighted a potential Caesars acquisition as a catalyst. He argued any such deal would imply a significantly higher value for MGM stock. "Barring worsening geopolitical or macro noise, we see the potential for upside revisions to Street earnings estimates," the Truist team wrote.