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.
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.
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