Billionaire Mason Hawkins’ 5 Stock Picks with Huge Upside Potential

4. MGM Resorts International (NYSE:MGM)

Number of Hedge Fund Investors: 47

Average Analyst Price Estimate: $53

Upside Potential: 23.69%

Casino giant MGM Resorts International (NYSE:MGM) is one of the top stocks in billionaire Mason Hawkins’ portfolio with upside potential.

In December, UBS published a list of top global stocks the firm believes could gain in 2024. MGM Resorts International (NYSE:MGM) made it to the list. Here is what UBS said in its note while sharing these stocks:

“After dipping more than 10% between August and October, global equities strongly rebounded in November amid hopes central banks will pivot to a more dovish stance. Lower market rates and resilient earnings are likely to support the asset class going forward, but a lot of optimism seems to already be priced in and macroeconomic risks are more skewed to the downside.”

MGM Resorts International’s (NYSE:MGM)12-month price target set by Wall Street analysts on average is $53, while the stock was trading at around $42.

Longleaf Partners Fund made the following comment about MGM Resorts International (NYSE:MGM) in its Q3 2023 investor letter:

“Digital holding company IAC was the largest detractor in the quarter after reporting weak earnings, particularly at underlying holding Angi, which represents a relatively small (single-digit %) proportion of the value but has an outsized impact on IAC’s stock price. Casino and online gaming company MGM Resorts International (NYSE:MGM) (which we also own directly and was a detractor in the quarter) comprises the largest portion of the IAC value. MGM faced multiple headwinds this quarter with a cyberattack that impacted all its properties and pending labor strikes in Las Vegas. Even with these events factored into our appraisal, MGM remains highly discounted today, and management is taking advantage of the price weakness to add value through meaningful share repurchase.”