Caesars, MGM Beat Expectations In Q1 As Digital, Vegas Units Shine, Says Analyst

BofA Securities analyst Shaun C. Kelley on Thursday put forth an analysis of the Gaming companies, Caesars Entertainment Inc CZR and MGM Resorts International MGM whose first-quarter results were announced this week.

The analyst reiterated a Buy rating on the shares of CZR and MGM and with a price forecast of $32.00 and $35.00 respectively.

Caesars (CZR) delivered strong first-quarter results, with revenue and EBITDA meeting expectations. Las Vegas and regional performance were solid, aided by cost controls and resilient demand.

Caesars Digital outperformed, posting $43 million in EBITDA, with iGaming growing faster than the market and OSB showing improved trends.

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The company is prioritizing profitability over volume, keeping promotional spending well below industry averages.

MGM reported a strong first-quarter with revenue and EBITDA slightly above expectations, led by solid Las Vegas performance and cost control.

April saw record room revenue, and demand appears stable heading into second-quarter. MGM China also outperformed on margins.

BetMGM showed strong growth with reduced promotions. Despite peers slowing development, MGM remains committed to projects in Japan and New York, increasing its Osaka investment forecast, opined the analyst.

Despite a slightly shorter booking window, MGM saw record April hotel revenue, while CZR reported strong forward bookings.

Consumer demand appears resilient, noted the analyst. MGM shares rose post-earnings, CZR dipped slightly.

Price Action: MGM shares traded lower by 2.38% at $30.71 at last check Thursday.

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