Pro Analysis

JP Morgan says buy MGM Resorts for its turnaround next year

The MGM Macau casino resort, in Macau, China.
Lam Yik Fei | Bloomberg | Getty Images
The MGM Macau casino resort, in Macau, China.

MGM Resorts shares' big drop this year presents a buying opportunity, according to J.P. Morgan.

The firm reiterated its overweight rating for the gaming company’s shares, predicting MGM Resorts will report improving earnings growth next year.

“We would be buyers of MGM heading into the back half of 2018, and see the stock offering an attractive risk/reward and setup for 2019,” analyst Joseph Greff said in a note to clients Wednesday. “We believe most of the issues that have caused 2018’s underperformance are transitory, and the picture is bright(er) heading into 2019."