Goldman Sachs initiated coverage on several major gaming stocks this week, which suggests that it could be an excellent sector to invest in, as long as you’re pretty laser-focused on which to pick up.
Analyst Lizzy Dove suggested that the gaming landscape for 2025 does point to uneven opportunities, particularly given varied performance across regions such as Las Vegas, regional US casinos, and Macau.
However, Dove also implied that, while caution remains essential, the current market conditions are primed for selective stock picking, especially among operators investing in visible growth projects. She emphasized that patient investors could find significant winners by carefully navigating this mixed environment.
Goldman Sachs singled out Caesars Entertainment and Wynn Resorts with bullish ratings. Caesars, rated a ‘Buy,’ was highlighted due to its strong cash-flow prospects over the next three years, stable regional casino pressures, and a promising Las Vegas outlook heading into 2026.
Dove sees Caesars as attractively positioned for value transfer from debt to equity as its major capital expenditure cycle wraps up.
Wynn Resorts also earned a ‘Buy’ rating, thanks to its high-quality assets and appealing demographic segments. Goldman identified Wynn’s upcoming Wynn Al Marjan opening, set for the first quarter of 2027, as a crucial catalyst that could drive meaningful upside, rewarding those aforementioned patient investors.
However, on the flip side, Goldman expressed caution towards MGM Resorts International, assigning it a ‘Sell’ rating. Dove pointed to MGM’s heavy lease obligations and an extensive capital investment cycle with delayed returns, notably its Japan expansion which is penned for post-2030. These factors were seen as creating unfavorable conditions for MGM’s free cash flow and capital returns.
Las Vegas Sands, another key industry player, received a neutral rating, reflecting more balanced risk-reward dynamics at this moment in time.
Overall, Goldman’s analysis aligns broadly with general Wall Street sentiment, though Wynn currently enjoys a slight quantitative advantage according to Seeking Alpha metrics.
