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Shares of MGM Resorts International (MGM) are up 15.16% since I added them to my Jubak Picks Portfolio on February 11, 2021.

I don’t think the gains are done for this casino and hotel stock. Today I’m raising my target price to $48 a share from the current $42. The stock closed at $40.05 on Monday, March 15, after gaining 5.08% on the day.

The biggest catalyst for today’s move came from an announcement by Nevada Governor Steve Sisolak raising the capacity limit for Nevada casino’s and restaurants to 50% from 35%. The new limits went into effect today, March 15. But crowds in Las Vegas jumped the gun this weekend. MGM Resorts International is by far the biggest operator of hotels and casinos on the Las Vegas Strip.

The other near term catalyst for the shares is the three-week long NCAA basketball tournament that starts on Friday. The tournament usually produces extra traffic on the Strip and this year it will also contribute to company revenue from online sports better where MGM is one of the biggest U.S. operators.

Longer-term MGM should see improved revenue from its Macao properties (now 8% of the room share in Macao) as new infrastructure projects (airport expansion, a bridge link to Hong Kong, and improved light-rail transit) reduce congestion in Macao, where MGM holds one of the six gaming licenses. MGM also received a license to open casino and resort in Japan that is due to begin contributing significant amounts of revue in 2026. And let’s not forget the growing sports betting market, estimated to reach $6.2 billion by 2024.

Full disclosure: I own Call Options on MGM Resorts International (the June 18 option with a strike price of $32) in my personal portfolios.