Previewing 2Q Casinos; Fundamentals Are Solid, But Remaining Highly Selective

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Previewing 2Q Casinos; Fundamentals Are Solid, But Remaining Highly Selective

USA | Gaming EquityJulyResearch2, 2026

KEY STOCKS FEATURED INCLUDE:Previewing 2Q Casinos; Fundamentals Are Solid,

TICKER RATING PRICE TARGETBut Remaining Highly Selective

RRR BUY $75.00

Land-based gaming remains the most out-of-favor subsector in our coverage, MGM HOLD $48.00

as medium-term growth algorithms across the Las Vegas Strip and Macau face PENN HOLD $20.00

increasing headwinds. We believe growth in the sector is scarce, though recent MCRI HOLD $124.00

M&A suggests potential catalysts ahead. RRR remains our preferred Buy, with LVS HOLD $52.00

MGM data indicating a solid 2Q on domestic trends. PENN and MCRI appear at

risk of pullback with lack of support for recent share price strength.

Vegas looking better against easy compares. April–May Strip GGR increased +10.0% YoY despite KEY CHANGES INCLUDE:

visitor volumes rising just +0.1%, driven by favorable compares (Apr/May ’25 GGR (3.4%) YoY) TICKER RATING PRICE TARGET

and a stronger convention calendar (attendance +8.6% YoY), including incremental large, rotational

RRR BUY $75.00 ($74.00)

events such as State Farm’s National Agency convention. Against this backdrop, we expect

upcoming operator prints to indicate stable trends in the market, with CZR appearing the primary MGM HOLD $48.00 ($44.00)

beneficiary of State Farm-driven group demand, while MGM is more leveraged to high-end baccarat PENN HOLD $20.00 ($16.00)

strength (Apr/May baccarat win +15.2% and +58.5% YoY, respectively); our view remains that MCRI HOLD $124.00 ($113.00)

longer-term growth durability is less certain absent a more pronounced recovery in leisure demand, LVS HOLD $52.00 ($63.00)