Shares of Gambling and resorts giant MGM Resorts (NYSE: MGM) rallied more than 9% on Tuesday and climbed to a fresh 52-week high of $48.94. The strong bullish momentum came after Credit Suisse upgraded the company’s shares to “outperform” from “neutral” status, with a $68 price target.
“MGM has gone through a transformation, recently announcing four transactions, and we believe the market is not giving full credit,” Credit Suisse said.
Last month, MGM Resorts entered into a definitive agreement with Blackstone Group to acquire the hotel operations of The Cosmopolitan of Las Vegas for $1.625 billion. The Cosmopolitan is an 800-room luxury resort and casino that opened in 2010. Blackstone purchased the property from Deutsche Bank for $1.7 billion in 2014. According to Blackstone, the transaction is expected to close in early 2022.
“We look forward to welcoming The Cosmopolitan's guests and employees to the MGM Resorts family," MGM Resorts CEO, Bill Hornbuckle said.
Technically the overall momentum remained bullish for the $MGM throughout this year and the stock is up 40% so far in 2021. In the short term, if the bullish momentum continues the stock can push further up continuing the uptrend with the first potential target should be $50/54.
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