MGM Resorts International's (MGM) near-term core trends in Las Vegas, Macau and digital could continue to be pressured even as People (PPLI) indicated it remained interested in a potential strategic transaction after withdrawing its acquisition proposal, BofA Securities said in a note Thursday.

People's proposal highlighted potentially undervalued assets within MGM, including the Osaka, Japan development, the investment firm said. People still owns 27% of MGM Resorts, the firm added.

BofA models Q3 EBITDA below consensus for Las Vegas and Macau as it noted the seemingly softer demand in Las Vegas and slower market growth in Macau. In digital, BetMGM is performing well but NFL outcomes could weigh on Q3, while international digital faces regulatory risk in Brazil, according to the note.

BofA Securities moved its rating on MGM Resorts stock to neutral from no rating, with a price target of $40.

Shares of MGM Resorts were down 9.6% in Thursday trading.

Price: 34.21, Change: -3.64, Percent Change: -9.61