MGM Receives a 'Sell' Rating from Goldman Sachs
In the world of gaming and hospitality, MGM Resorts International (NYSE: MGM) is currently navigating a complex landscape. The company's shares retreated on July 7, 2025, following negative commentary from Goldman Sachs analyst Lizzy Dove.
Dove, who initiated coverage on various gaming equities on that same day, including MGM Resorts International, rates the company a "sell" with a $34 price target. This suggests an approximately 10% downside from the July 3 close. Dove's report indicates concerns about MGM's significant lease burden and upcoming capital expenditure cycles for projects not opening in the near-to-medium term, which could negatively impact free cash flow generation, capital returns, and valuation.
However, it's important to note that as of mid-2025, there is no specific or public information indicating that MGM Resorts International is actively pursuing the sale of its regional casinos in Massachusetts and Ohio.
MGM’s regional operations have, in fact, posted strong revenue growth. In Q2 2025, they generated $965 million in net revenues, a 4% increase year-over-year, supported by improvements in casino revenue from table games and slots. The company's outlook emphasizes growth and profitability expansion through existing operations (including regional casinos) and digital ventures such as BetMGM.
Recent corporate communications and earnings calls highlight investments in existing properties and expansion of digital and China operations, but do not detail any plans to sell regional casino properties. Analyst commentary or stock target revisions have not mentioned asset sales as part of MGM’s strategic moves publicly.
In the Las Vegas market, monthly gross gaming revenue (GGR) figures are in a multi-month slide. Dove considers MGM to be the most macro-sensitive name in the bank's gaming coverage space. The city faces heightened macroeconomic risks, which could be a potential drag on shares of MGM. Dove, the Goldman Sachs analyst, calls the current climate in Las Vegas "choppy."
Some experts argue that the slack monthly GGR figures in Las Vegas are attributable to volatile trade policy from the White House. Others contend that Las Vegas operators, including MGM, have made visits to the city nearly unaffordable for middle-class folks.
MGM has already monetized the real estate of MGM Northfield Park and MGM Springfield. In the past, the company has sold operating rights on casinos where the land was owned by a third party, such as the Mirage on the Las Vegas Strip and a regional casino in Mississippi.
In 2022, MGM Growth Properties (MGP), a real estate holding company for MGM's property assets, was sold to VICI Properties (NYSE: VICI) for $17.2 billion. Today, VICI Properties and Blackstone (NYSE: BX) own nearly all of the domestic real estate on which MGM casino hotels reside.
Goldman Sachs states that MGM has $1.8 billion in annual lease and spending commitments. MGM has gained 15.58% in the past month, despite these challenges.
In conclusion, while MGM Resorts International faces challenges related to lease burdens, macroeconomic risks, and volatile trade policies, there is currently no public indication that the company is actively pursuing the sale of its regional casinos in Massachusetts and Ohio. The company appears focused on optimizing and growing its regional casino operations rather than divesting them at this time.
- MGM Resorts International, a company specifically mentioned in the gaming and hospitality sector (NYSE: MGM), faced a share retreat on July 7, 2025, due to negative commentary from Goldman Sachs analyst Lizzy Dove.
- Dove's report raised concerns about MGM's financial status, specifically its significant lease burden and upcoming capital expenditure cycles that could impact free cash flow generation, capital returns, and valuation.
- Despite the negative outlook, there's no public information suggesting MGM is actively selling its regional casinos in Massachusetts and Ohio as of mid-2025.
- MGM’s regional operations have shown strong revenue growth, with Q2 2025 net revenues reaching $965 million, a 4% increase year-over-year.
- MGM has a history of monetizing its real estate assets; for instance, MGM Northfield Park and MGM Springfield have already been monetized, and the company has sold operating rights for casinos where the land is owned by a third party.
