The casino has ushered in the footsteps of spring, and this is expected to lead the recovery

Citi resumed coverage of casino operator MGM Resorts International with a bullish view.

Citi also changed mgm Resorts' rating from review to buy with a target price of $57, about 17.5 percent higher than MGM Resorts' closing price on Wednesday.

Citi analyst George Choi said in a note Thursday that MGM Resorts is one of the main beneficiaries of a strong recovery in Las Vegas and the rest of the United States.

MGM Resorts reported better-than-market expectations on Thursday, with fourth-quarter adjusted earnings per share of $0.12 and revenue of $3.06 billion. Analysts surveyed by Refinitiv had expected MGM to earn $0.02 per share and revenue to be $2.79 billion.

While the Aumicron variant virus weakened tourism in Las Vegas in January, MGM Resorts expects tourism to improve in the coming months.

"The number of booking cancellations in February has begun to decline due to improved COVID-19 trends in Nevada, MGM management expects occupancy rates to recover to around 75% in February (a series of sporting events have led to an increase in visitor arrivals in Las Vegas over the past weekend) and occupancy rates to around 85% in March," George Choi said.

The analyst also praised MGM Resorts for its initiatives to reduce costs and increase leverage.

Choi said Citi is bullish on MGM Resorts because of its leaner cost structure and increased leverage (after a series of asset monetization deals).

Shares of MGM Resorts rose 8.4 percent in 2022, compared with more than 4 percent in the S&P 500.

This article originated from the financial world