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Citi resumed coverage of casino operator MGM Resorts International with a bullish outlook. The firm changed its rating on MGM to buy from under review. Citi has a $57 price target on the
stock, about 17.5% higher than MGM's closing price Wednesday. "The operator stands as one of the major beneficiaries from the solid recovery in Las Vegas and the rest of the
U.S.," Citi's George Choi said in a note Thursday. The call comes after MGM posted better-than-expected quarterly results. MGM reported fourth-quarter adjusted earnings of $0.12
per share on revenue of $3.06 billion. Analysts surveyed by Refinitiv had expected a profit of $0.02 per share on revenue of $2.79 billion. While omicron dented tourism in Las Vegas in
January, MGM expects travel to improve in the next couple months. "Cancelations are declining in February, and management expects occupancies to recover to mid-70s in February (citing a
series of sports events which provided tailwinds to visitation to LV over the past weekend) and mid-80s in March, given the improving COVID trends in Nevada," Choi said. The analyst
also praised MGM for cutting down on costs and bettering its leverage. "We also like the casino operator for its leaner cost structure and its improved gearing (after a series of asset
monetization transactions)," Choi said. MGM shares are up 8.4% in 2022, compared with the S & P 500's loss of more than 4%. —CNBC's Michael Bloom contributed reporting.