Caesars Rumored Takeover Price Implies MGM Worth $60 a Share, Says Analyst
Posted on: April 30, 2026, 01:09h.
Last updated on: April 30, 2026, 01:09h.
- The rumored takeover price of Caesars implies MGM is worth $60 a share
- That’s a roughly 50% discount to where the stock trade today
- Estimate doesn’t account for Japan casino
If recent speculation regarding the price at which Caesars Entertainment (NASDAQ: CZR) could be acquired is accurate, the implication is that rival MGM Resorts International (NYSE: MGM) is worth significantly more than its current share price reflects.
In a new report to clients, Texas Capital analyst David Bain notes takeover rumors surrounding Caesars are a potential catalyst for MGM. That makes sense because the two companies are the largest operators on the Las Vegas Strip with MGM being the bigger of the two in Sin City.
We note CZR’s speculated M&A valuation implies $60 per share MGM value,” observes Bain who has a $56 price target on shares of the Bellagio operator.
He didn’t identify what purported takeover price for Caesars potentially makes MGM worth $60 a share. Recent reports suggest Tilman Fertitta has floated offers for Caesars ranging from $32 to $34 a share while activist investor Carl Icahn is said to have offered $33 a share.
MGM Appears Deeply Discounted
Strip out the conjecture pertaining to Caesars and take the leap of faith that Bain is correct in his assessment the MGM is worth $60 a share based on the Caesars acquisition rumors.
That implies the stock is worth about 50% more than where it trades at today, confirming the view of some major investors that casino operator’s shares are in fact deeply undervalued. But there’s more to the story.
Bain acknowledges his $60 projection on MGM stock doesn’t include MGM Osaka, which is scheduled to open in 2030. He estimates Japan’s first casino resort is worth another $9 to the operator’s share price, implying the stock could be worth as much as $69 a share. To get to $69 from current levels, MGM stock would need to rise by more than 72%. MGM management seems to agree that the stocks is inexpensive as it remains a dedicated buyer of it.
“MGM repurchased ~2.2 million shares for $90 million during 1Q26. Management indicated its recent sale of Northfield Park allows for more aggressive buybacks at current share price levels versus 1Q. Over the last five years, MGM has reduced its share count by nearly 50%,” notes Bain.
Some BetMGM Talk
Arguably one of the reasons MGM is undervalued is because the company doesn’t control all of BetMGM. That online gaming business is a 50/50 joint venture between the casino giant Entain Plc (OTC: GMVHY). With its economics steadily improving, it’d potentially be a boon for MGM to control all of it.
There’s been some talk of late regarding Entrain “optionality” around BetMGM, but nothing concrete has emerged as of yet. Bain points out “the potential for BetMGM/omnichannel value unlocking” is a possible catalyst for MGM stock, but he didn’t elaborate further.
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