Wells Fargo analyst Daniel Politzer maintained a Buy rating on Churchill Downs (CHDN – Research Report) yesterday and set a price target of $141.00.
Daniel Politzer’s rating is based on a comprehensive analysis of Churchill Downs’s (CHDN) financial performance, particularly the strong results in the first quarter of 2024. The company reported earnings before interest, taxes, depreciation, and amortization (EBITDA) that surpassed both the Wells Fargo high estimate and the average Street estimate, demonstrating robust growth and operational efficiency. The substantial beat was driven by high-margin contributions from the Live and Historical Racing Machine (HRM) segment in Kentucky and Virginia, as well as outperformance in the Gaming division through joint ventures. Projects were noted to be on track and within budget, which is a positive indicator of the company’s project management and future prospects.
Further bolstering the Buy rating, the report highlights the successful expansion and cost-effective synergies in Virginia’s operations, which have led to significant improvements in EBITDA margins. Additionally, the report points out the company’s disciplined capital return strategy, with a substantial share repurchase program and the payment of dividends, which reflects a shareholder-friendly approach. These factors, combined with the company’s solid capital expenditure updates and the successful sale of assets like United Tote, suggest that Churchill Downs is well-positioned for continued growth and profitability, warranting a Buy rating from the analyst.
According to TipRanks, Politzer is a 4-star analyst with an average return of 6.2% and a 50.92% success rate. Politzer covers the Consumer Cyclical sector, focusing on stocks such as Churchill Downs, Hilton Worldwide Holdings, and Hyatt Hotels.
In another report released today, JMP Securities also reiterated a Buy rating on the stock with a $150.00 price target.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Churchill Downs (CHDN) Company Description:
Churchill Downs, Inc. operates as a provider of pari-mutuel horseracing, online account wagering on horseracing and casino gaming. It operates through the following business segments: Racing, Casino, Online Wagering, Corporate, and Other Investments. The Racing segment includes Churchill Downs Racetrack, Arlington Park Racecourse, Calder Race Course, and Fair Grounds Race Course. The Casinos segment includes Oxford Casino, Riverwalk Casino Hotel, Harlow’s Casino Resort and Spa, Calder Casino, Fair Grounds Slots, Video Services and equity investment. The Online Wagering segment offers simulcasting and interactive wagering hub. The Corporate segment includes miscellaneous and other revenue, compensation expense, professional fees and other general and administrative expense not allocated to other operating segments. The Other Investments and Corporate segment consists of United Tote Company and United Tote Canada, Capital View Casino and Resort, Bluff Media, and minor investments. The company was founded in 1875 and is headquartered in Louisville, KY.
Read More on CHDN:
