Truist says MGM Osaka could generate US$2bn in annual EBITDA
Investment bank upgrades MGM Resorts stock outlook and highlights the long-term potential of the company’s integrated resort project in Osaka.
Japan.- MGM Resorts International’s integrated resort project in Osaka, Japan, could eventually generate US$2bn in annual EBITDA, according to analysts at Truist Securities. The forecast was included in an investor note in which the investment bank upgraded MGM Resorts from “Hold” to “Buy” and raised its target price for the company’s shares from US$42 to US$55.
Truist analyst Barry Jonas said MGM Osaka could become a major long-term catalyst for MGM. The joint venture involves an estimated investment of around US$10bn and is slated for a 2030 opening. According to Truist, MGM’s share of projected EBITDA could reach approximately US$800m annually.
Truist noted that the project adds to MGM’s international diversification strategy, alongside its existing casino operations in Macau. The investment bank also pointed to improving conditions in Las Vegas as another reason behind its more positive view on MGM. It said recent consumer surveys showed stronger sentiment towards Las Vegas tourism, including better perceptions of value and increased interest in future travel.
