The hospitality and entertainment company MGM Resorts International’s (MGM) BetMGM has partnered with NYRA Bets, LLC. BetMGM is the exclusive sports betting division of MGM Resorts. Shares of the company were down 2.1% to close at $42.87 on May 28.
NYRA Bets is the official online wagering platform and a major provider of horse racing content in the United States. NYRA Bets, which continues to expand its presence, is currently available in 30 states.
The deal will enable BetMGM customers to watch and bet on premier Thoroughbred, Standardbred, and Quarter Horse races at more than 200 tracks globally. BetMGM customers will now be able to watch daily horse racing content, live streaming videos, and race replays. Its customers can also bet on marquee events in the United States. The deal is expected to further expand BetMGM’s customer base.
BetMGM CEO Adam Greenblatt said, “We’ve found a great partner in NYRA Bets and look forward to working with them to create a thrilling, interactive experience for horse racing fans on BetMGM.” (See MGM Resorts stock analysis on TipRanks)
On May 21, Jefferies analyst David Katz reiterated a Buy rating and a price target of $53 (23.6% upside potential) on the stock.
Katz stated, “We believe the issues and catalysts are progressing as expected-improved operating execution in an improving environment, accelerating growth in BetMGM, thoughtful capital allocation and simplifying the corporate structure which should improve the shares’ trading levels from current ~9.5X EBITDA.”
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 4 Buys, 5 Holds, and 1 Sell. The average analyst price target of $44.80 implies 4.5% upside potential to current levels. Shares have increased 48.8% over the past six months.
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in MGM Resorts is currently Neutral, as the cumulative change in holdings across all 13 hedge funds that were active in the last quarter was a decrease of 12.7 million shares.
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