Wall Street analysts at Goldman Sachs recently initiated coverage of gambling stocks, and they are particularly bullish on two casino gambling stocks – Wynn Resorts (NASDAQ:) and Caesars (NASDAQ:) Entertainment.
Goldman Sachs analyst Lizzie Dove launched coverage of Wynn with a buy rating and a price target of $122 per share, which suggests about an 11% increase over the current share price.
“WYNN offers best in class assets, with favorable demographic exposure and solid 2027 tailwinds. With the upcoming 1Q27 launch of Wynn Al Marjan, we believe patient investors will be rewarded and view WYNN as the most catalyst-driven stock amongst our coverage, with meaningful upside from here,” Dove wrote in a note to investors, reported MSN.
Caesars was also rated as a buy with a price target of $36 per share. That would represent about a 21% upside over its current share price of $29.80 per share.
“With a solid 2026 setup in Las Vegas, competitive pressures in regionals starting to stabilize and significant FCF generation over the next 3 years, we see an attractive risk-reward with highly visible and modelable debt to equity value transfer over time, following the completion of the multi-year capex cycle,” Dove wrote of Caesars, per MSN.
UBS Boosts Wynn’s Price Target
Wynn also got an upgrade from UBS on Tuesday, as the firm raised the price target by $18 per share to $101 per share and gave it a neutral rating. That’s still below its current price of $110 per share.
Just two weeks ago, JPMorgan initiated coverage on Wynn with a $109 price target and an overweight rating, which is akin to a buy rating. The stock price has already surged past that, trading at $110 per share. Analysts at JPMorgan cited its potential to return capital to shareholders via dividends and share repurchases.
Roughly two months ago, Morgan Stanley raised Wynn’s target to $101 per share, from $95 per share, and an overweight rating. That is below Wynn’s median price target among all analysts of $108.50 per share.
Caesars also got upgrades from JPMorgan Chase and Morgan Stanley. Analysts at JPMorgan Chase (NYSE:) raised the price target to $47 per share and gave it a buy rating. That would represent 57% upside for the stock. Analysts said Caesars is expected to generate significant free cash flow through 2027, which will help it pay down debt.
Also, Morgan Stanley bumped the target up $2 per share to $31 per share and an equal or neutral rating. Overall, Caesars has a median price target of $50.70 per share, which suggests about 45% upside over the next 12 months.
Goldman Sachs Has Bearish View of MGM
The one stock that Goldman Sachs called out as a sell rating was MGM (NYSE:). Goldman Sachs’s Dove also set a $34 per share price target, which would be about 9% lower than the current $37.50 per share price.
“With MGM’s significant lease burden and upcoming capex cycle for projects that are not opening in the near-to-medium term (Japan 2030+), we see unfavorable risk/reward against this macro, given the pressure on FCF generation, which we expect to weigh on capital returns and valuation,” Dove wrote in the investor note, according to MSN.
That flies in the face of what most analysts see. MGM has a median price target of $44.50, which suggests about 19% upside. On Tuesday, UBS raised its price target for MGM by $5 per share to $42 per share, which would represent a 12% return over the current price.
We wrote about MGM recently and took a more cautious view of the stock compared to the median price target.