MGM Resorts International (NYSE:MGM) is making new 52-week highs during Tuesday’s trading session. The stock was featured as the call of the day Tuesday on CNBC’s “Fast Money Halftime Report.”
What Happened: Credit Suisse analyst Benjamin Chaiken upgraded MGM Resorts to Outperform and raised the price target from $33 to $68.
Wright’s Take: Decatur Capital Management’s Degas Wright agrees with the Credit Suisse upgrade and said the stock is going to continue to trend higher.
MGM Resorts has a light asset model that is doing very well, Wright said. The company’s BetMGM product “is a growth engine” for the stock, he said.
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MGM Resorts owns 50% of the rooms in Las Vegas and has very limited exposure to Macau, he said, adding the company has a solar facility that provides electricity to its properties in Las Vegas.
“Positives all the way around. We really like the stock and it’s going to continue to run, so this is a stock to hold,” Wright said.
MGM Price Action: MGM Resorts has traded as low as $19.55 over a 52-week period. The stock closed up 9.6% at $48.69.
Photo: Ken Lund from Flickr.