Morgan Stanley Rates Melco Resorts & Entertainment (MLCO) hold

Morgan Stanley has lowered its rating on MLCO to hold, with a new price target of $6, a 8.50% upside from the current price.

By TradeTexts Research Desk · Published Jun 22, 2026, 2:01 PM EDT · Updated Jun 22, 2026, 9:06 PM EDT

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Morgan Stanley rated Melco Resorts & Entertainment Limited ($MLCO) "hold" with a $6 price target on June 22, 2026.

Since the rating, $MLCO is up 1.5% after 1 week, up 3.2% after 1 month and down 21.7% to date (from the $5.30 close on Jun 22, 2026).

MLCO Melco Resorts & Entertainment Limited

$4.15 -44.74% year to date

Daily close · Oct 16, 2026

Key Points

Morgan Stanley downgraded MLCO to a hold rating on June 22, 2026, setting a price target of $6.
Morgan Stanley's $6 price target implies 8.50% upside from Melco Resorts & Entertainment Limited's ($MLCO) current $5.53 share price.
Shares of MLCO traded near $5.53 on Monday, with active insider buying and selling in recent months.
Institutional investors like ARGA Investment Management and FIL Ltd. adjusted their positions in MLCO.

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Morgan Stanley has downgraded its rating on MLCO to hold, setting a new price target of $6. This move was announced on June 22, 2026, as part of their latest analyst update. Shares of MLCO traded near $5.53 on Monday following the announcement.

Analyst rating track record

Morgan Stanley vs. the S&P 500

YTD return +27.56% hypothetical

All-time return +24.24% S&P 500 +34.72%

vs. S&P 500 -10.48% behind the index

Hypothetical returns from Morgan Stanley's disclosed trades, not real profit or advice. How we model this.

Other Institutional Activity in MLCO

Several institutional investors have been adjusting their holdings in MLCO. ARGA Investment Management, LP reduced its stake by 8,344,481 shares, ending with 14,508,114 shares valued at about $82.4 million, a 36.5% decrease. On the other hand, Coronation Fund Managers Ltd. increased its holdings by 2,934,127 shares, bringing its total to 11,269,346 shares worth approximately $64 million, marking a 35.2% increase. FIL Ltd. also expanded its position significantly, adding 4,782,224 shares for a total of 9,431,944 shares valued at $53.6 million, which represents a 102.8% increase.

Insider Buying and Selling at Melco Resorts & Entertainment Limited

Recent insider activity at MLCO includes several significant transactions. On June 3, 2026, Geoffrey Stuart Davis, the CFO, sold 55,512 shares at an average price of $1.93. Earlier, on May 8, 2026, multiple insiders made large purchases: Akiko Takahashi, Chief of Staff, acquired 472,851 shares; Evan Andrew Winkler, President, bought 4,629,888 shares; and CEO Lawrence Yau Lung Ho purchased 4,692,735 shares. These transactions were not part of planned trading programs.

Analysts Set New Price Targets

Morgan Stanley's recent downgrade to a hold rating with a $6 price target was joined by other analyst actions earlier this year. On January 16, 2026, JP Morgan also downgraded MLCO to hold with a $7.7 target. Despite these downgrades, previous ratings from other firms like Citigroup and Susquehanna have maintained more positive outlooks.

Bottom Line

Morgan Stanley's downgrade of MLCO reflects a cautious outlook with a new hold rating and a $6 price target. The stock is currently trading near $5.53, with significant institutional and insider activity suggesting varying levels of confidence in the company's future performance. Investors should consider these factors, keeping in mind that analyst ratings are one piece of the investment puzzle.

12-month forecast