MGM Resorts price target lowered to $56 from $59 at Citi

Citi analyst George Choi lowered the firm's price target on MGM Resorts to $56 from $59 and keeps a Buy rating on the shares. Most investors seem to be willing to look past the recent COVID outbreak in Macau and have regained confidence in the eventual EBITDA recovery in Macau, Choi tells investors in a research note. The analyst attributes the positive sentiment change to the "much-lower-than-anticipated regulatory risks" after Legislative Assembly's passing of the Gaming Law amendments in June. China's decision to half the mandatory quarantine days for inbound travelers "also gets investors excited again," says Choi. In the near-term, he thinks the license re-tender, likely to happen in August, could be the next positive catalyst to re-rate the Macau stocks "to the next level."