In this pitch deck, analysts Erik Holst, Edvin Egnell, and David Apelryd deliver a comprehensive analysis
of MGM Resorts International. The company is a global leader in hospitality and entertainment,
operating an unmatched portfolio of premium resorts and the rapidly growing BetMGM platform.
Recent market concerns surrounding macroeconomic headwinds have created an attractive entry
point for investors. Utilizing both a DCF and peer valuation approach, a target price of $56, equivalent
to a 75% upside and a projected three-year IRR of 29%, is justified.
Key takeaways
● MGM’s shift to high-margin, premium properties on the Las Vegas Strip has boosted occupancy
rates and RevPAR, creating a stable and profitable portfolio.
● The iGaming platform, BetMGM, is set to achieve profitability by 2025, with a projected EBITDA
contribution of $1.2 billion by 2027, driven by its omnichannel model and MGM Rewards
integration.
● MGM’s asset-light strategy, including sale-leaseback transactions, has unlocked capital for share
repurchases and strengthened shareholder returns.