BTIG initiated coverage of MGM Resorts International (NYSE:MGM) with a Buy rating and price target of $52. Analyst Clark Lampen pointed to an attractive fundamental story, favorable risk/reward, and mixed investor sentiment.

In the near term, Lampen and his team see room for upward estimate revisions, driven by Las Vegas and China, and healthy capital returns with possible kickers from China dividends and the potential sales of regional properties.

"With Vegas implied at ~8x ’24 EBITDA within our sum-of-the-parts (or ~5x when lease liabilities are capitalized at 8x cash rent, rather than full BS liability), the current fundamental story doesn't seem appropriately discounted, and we'd expect the multiple to expand as Vegas concerns fade and numbers move higher."

BTIG also looked beyond the three core property segments to see upside for the MGM digital business. The digital segment was called a key driver of a growing delta between BTIG's estimates and consensus marks for future years.

BTIG assigned a price target of $52 to MGM Resorts (MGM), which was based on its 2024 free cash flow estimate and a property-level sum-of-the-parts evaluation.

The Seeking Alpha Quant Rating on MGM is also flashing Buy due to strong marks for profitability, momentum, and revisions.

Shares of MGM Resorts International (MGM) rose 1.25% in premarket trading to $42.86 vs. the 52-week range of $34.12 to $51.35.