Photo by Kaysha on Unsplash 

MGM Resorts International (NYSE: MGM) stock has struggled in recent years, with a three-year average annualized return of -3%, including a 6% decline so far in 2025.

The question investors may be asking themselves is: Has MGM hit bottom? Wall Street analysts seem to think so, as the casino stock is rated as a buy across the board with a median price target of $45 per share.

That would represent a roughly 42% increase over the current share price of roughly $31.68 per share. Should investors be eyeing MGM stock?

Some positive momentum

MGM is coming off a fiscal first quarter where both earnings and revenue declined year-over-year, but both exceeded analysts’ estimates. The year over year results are a little skewed, however, as Las Vegas hosted the Super Bowl in the first quarter of 2024, so the comparison is a tough one.

So, while revenue and earnings were down by comparison, it was mainly due to non-gaming revenue, namely hotel room nights. Casino revenue was actually up 8% last quarter in Las Vegas year over year. Revenue from its regional U.S. casinos and at its properties in China was also down.

But along with the uptick in Vegas casino gaming, MGM saw improved results with its online sports betting app, BetMGM. It cut its net losses in half to $12 million, and had positive EBITDA of $22 million, up from a $154 million loss in the same quarter a year ago.

BetMGM has been a struggle to get off the ground in a field dominated by DraftKings (NASDAQ:DKNG) and FanDuel, but it has made inroads, ranking third in market share. In the first quarter, online sports betting revenue surged 68% to $194 million. In addition, iGaming revenue surged 27% to $443 million.

BetMGM is guiding for BetMGM to have positive EBITDA at the end of 2025.

Time to buy MGM stock?

MGM stock is fairly cheap right now, with a P/E ratio of 14, and it has some momentum with BetMGM and its April bookings in Las Vegas, which were up. Also, Macau, where MGM has several casinos, reported a 5% increase in gaming revenue in May. It was the highest total since the pandemic.

Analysts have set a median price target of $45 per share for MGM stock, which would represent a 42% return over the next 12 months. Just last week, Morgan Stanley raised its price target by $1 to $37 per share, which would be a 16% price increase.

One concern that is a bit of a wildcard for MGM is the potential reduction in travel to the U.S. from foreign visitors. In the first quarter, visitor travel to Vegas was down 7% year-over-year, and that was before the tariff regime started.  That is one metric I’d watch closely.

There is a lot to like about MGM, but there is too much uncertainty right now to match the lofty projections of analysts. Investors might want to wait a quarter for more visibility on travel and a better entry point. One potential catalyst later in the year for BetMGM is sports betting launching in Missouri in December.

More By This Author: