MGM Stock Named ‘High Conviction’ Reopening Idea by Credit Suisse

MGM Resorts International (NYSE:MGM) stock is getting a supercharge today. That’s after Credit Suisse named the largest manipulator on the Las Vegas undress I of its top quaternity reopening trade ideas for 2022.

In a mention to clients today, psychoanalyst Benjamin Chaiken reiterates an “outperform” rating on the gambling casino giant, while lifting his toll direct on the inventory to $74 from $68. That’s well above the Wall Street consensus of $55.07, and implies upside of 72 percent from the Jan. 5 close.

The bank is also bullish on International Game Technology (NYSE:IGT), Hilton Grand Vacations (NYSE:HGV), and SeaWorld Entertainment (NYSE:SEAS).

As we appear to 2022, we want to highlighting our quaternion best ideas: MGM, HGV, IGT and SEAS. These are our highest article of faith ideas, and stocks that we conceive had momentum prior to the sell-off and thus should hold acceptation as the market place recovers,” says Chaiken.

The analyst’s ring on the Bellagio operator could live well-timed for investors, because after a strong December, MGM buy in started 2022 on a jolting note, sloughing 4.1 percent prior to today. The shares are 13.39 percent beneath the 52-week high.

Reasons for Optimism with MGM Stock

Credit Suisse’s phone call on MGM arrives amid nascent, though budding, positivism on the gaming equity inwards the betimes stages of 2022.

For example, earlier this hebdomad JPMorgan analyst waxed bullish on Barry Diller’s IAC/InterActiveCorp (NASDAQ:IAC) — the companion that owns a 12 percent equity wager inwards MGM. Without identifying exactly what, those analysts speculate IAC has something interesting inwards stack away for MGM this year. It’s non confirmed as of yet, but it could wellspring revolve around BetMGM iGaming and its online sportsbook unit.

For his part, Chaiken sees reasons to follow constructive on the Mandalay Bay operator, citing factors such as an asset-lite operating model, a compelling upper-case letter structure, strong showings at the company’s Las Vegas venues, and improving sentiment.

“We opine that boilers suit sentiment in recent weeks has soured. But for our topper ideas, we don’t cogitate company-specific drivers hold changed,” said the analyst of the iv aforementioned reopening ideas.

Good Timing

Some analysts believe the recent sliding board in global gaming equities hastened by the outgrowth of the omicron variant of the coronavirus is creating compelling opportunities to receive involved with cassino stocks.

Chaiken’s commentary on MGM also arrives on the same 24-hour interval the troupe formally unveiled its new customer trueness program — MGM Rewards.

“All members canful now earn MGM Rewards Points when they play, stay, or dine at all domestic MGM Resorts destinations on flat engaged rooms and food for thought & beverage, as substantially as slots, and now, tabulate games,” according to a statement issued past the company.