TD Cowen analyst Lance Vitanza has maintained their bullish stance on CZR stock, giving a Buy rating on January 22.
Lance Vitanza has bestowed a Buy rating on Caesars Entertainment’s stock, informed by the company’s strategic financial maneuvers in refinancing its 2025 debt obligations. By successfully pricing $1.5 billion in new first-lien notes and expanding its term loan to approximately $2.9 billion, Caesars has not only addressed its near-term debt maturities but did so on terms that Vitanza considers to be shareholder-friendly. This adept handling of capital markets activity has further bolstered his optimistic stance on the gaming entity, which he regards as a top investment in the sector.
The advantageous terms of the new first-lien debt, priced at 6.5%, represent a modest increase over the notes being refinanced and are slightly lower than other existing secured notes. Caesars’ plan to allocate the proceeds from the new debt to address its 6.25% and 5.75% notes due in 2025 signals a deferral of significant debt repayment until 2027, with only a slight uptick in annual borrowing costs. These strategic financial decisions underscore the company’s stable fiscal positioning and Vitanza’s confidence in Caesars’ long-term prospects, warranting the Buy rating.
Vitanza covers the Communication Services sector, focusing on stocks such as Deluxe, Clear Channel Outdoor, and Gogo. According to TipRanks, Vitanza has an average return of 12.3% and a 47.62% success rate on recommended stocks.
In another report released on January 22, Jefferies also reiterated a Buy rating on the stock with a $66.00 price target.
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Caesars Entertainment (CZR) Company Description:
Eldorado Resorts, Inc. operates as a casino entertainment company. It engages in gaming operations, and manages hotels, restaurants, bars, racing, retail shops, and other services. It operates through the following segments: West, Midwest, South, East, and Central. The West segment consists of seven properties in Nevada and Colorado. The Midwest segment comprises of dockside and land-based casinos in Iowa and Missouri. The South segment includes dockside casinos in Louisiana and Mississippi, and racino in Florida. The East segment is involved in the operation of racinos located in Pennsylvania, Ohio, and West Virginia; and casinos in Pennsylvania and New Jersey. The Central segment is composed of properties in Indiana, Illinois, and Missouri. The company was founded by Donald Louis Carano in 1973 and is headquartered in Reno, NV.
Read More on CZR:
- Caesars Entertainment Announces $1.5 Billion Secured Notes Offering
- Bet On It: Flutter reports Q4 trading update ahead of U.S. listing
- Caesars price target lowered to $55 from $63 at TD Cowen
- Caesars Entertainment Secures $2B Loan, Reports Q4 Preliminary Results
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