HomeInvesting NewsMGM Resorts suffers after Argus leaves the rating race

MGM Resorts suffers after Argus leaves the rating race

Published on

MGM Resorts International (NYSE:MGM)

Following Argus’ downgrading of its rating on the casino stock to Hold from Buy, MGM Resorts International (NYSE:MGM) experienced a decline in early trading on Thursday.

High costs and intense competition, according to analyst John Staszak and his team, will prevent MGM from benefiting from development in the American gaming market or from being able to carry out its growth plans. Argus anticipates that results in Macau will continue to be adversely impacted by China’s stringent COVID-19 laws and oversight of VIP gaming.

MGM Resorts (MGM) is warned on the balance sheet that it runs the risk of having to make sizable loan payments during a downturn in the economy.

All things considered, Argus lowers its estimates for MGM’s 2022 and 2023 earnings per share to $0.80 and $1.20, respectively, from $0.82 and $0.82, respectively. MGM’s premarket share price dropped 1.06% to $33.23 from a 52-week high of $51.17 and a low of $26.41.

Additional information

The public tender offer made by MGM Resorts International (MGM) to buy LeoVegas AB (publ) (“LeoVegas”)’s shares at a price of SEK 61.00 in cash per share, or roughly $604 million overall, was accepted by 96% of LeoVegas shareholders last month, according to an announcement. On September 7, 2022, the shares’ settlement process is anticipated to begin.

Gustaf Hagman and Robin Ramm-Ericson founded LeoVegas in 2011, and it is a top-tier international online gambling business with licenses in nine jurisdictions, particularly in the Nordic region and the rest of Europe. 

In the past year ending June 30, 2022, LeoVegas earned revenue of $393.5 million and an adjusted EBITDA of $46 million. The company has its headquarters in Stockholm. It has main operations in Milan, Malta, and the United Kingdom.

Featured Image – Megapixl © Jetcityimage

See Disclaimer Please

Latest News

Google Argues that Shared Network Costs are Old Ideas

On Monday, the Alphabet subsidiary Google (NASDAQ:GOOGL) responded negatively to a request made by...

Intel Corporation and Italy Have Chosen Veneto As Their Preferred Region For A New Chip Plant, According To An Exclusive Announcement

Two people who are familiar with the situation have stated that the incoming government...

Apple Inc Has Stated That The iPhone 14 Will Be Manufactured In India

Apple Inc. (NASDAQ:AAPL), the world's largest consumer electronics maker, announced on Monday that some...

Why is Tesla Stock So Resilient?

Amid forecasts of doom by short-shellers, Tesla stock (NASDAQ:TSLA) has remained strong despite the...

More like this

Twilio Stock: The Upside of a Down Day

Twilio Stock (NYSE:TWLO) Though a new week has begun, the stock market continues to show...

The Reason Why Roblox Stock Rose Today

Roblox Stock (NYSE:RBLX) Roblox stock was up 2.5% as of 12:10 PM ET on Monday....

Apple’s Stock Price Rises Slightly as J.P. Morgan Cites Robust Demand for the iPhone 14.

Apple's Stock (NASDAQ:AAPL) Monday saw a little increase in the price of Apple's stock as...

Ford Stock Drops as Work Begins on the Blue Oval Mega Campus in Tennessee.

Ford Motor (NYSE:F) Ford stock plunged after it announced that they just started building its BlueOval City...

Dash Stock Slides as It Aims to Increase Its Market Share in Supermarket Delivery

Dash stock slightly drops to trade at $50.56 by 12:32 PM EDT. Even if the...

Lockheed Stock Falls Despite Winning Army Contract to Upgrade Apache Helicopter.

Lockheed Martin Corp. (NYSE:LMT) Lockheed Martin stock slips after Rotary and Mission Systems, a division...