Deutsche Bank analyst Carlo Santarelli reiterated a Buy rating on Caesars Entertainment (CZR – Research Report) today and set a price target of $62.00.
Carlo Santarelli has given his Buy rating due to a combination of factors including the company’s preliminary results for the fourth quarter of 2023, which prompted an update to future forecasts. The revisions to Caesars Entertainment’s earnings estimates for 2024 and 2025 are primarily based on stronger expected margins, the absence of one-time items that negatively impacted 2023’s comparisons, and a more significant impact from return on investment projects than was previously anticipated. These factors have led to a positive adjustment in the stock’s price target, increasing it to $62 from $60.
Beyond the revised forecasts, Santarelli’s confidence in Caesars Entertainment is bolstered by the stock’s attractive risk-reward profile, assuming no major deterioration in macroeconomic conditions. The company is expected to generate a healthy free cash flow yield by 2025, and its debt reduction strategy should benefit equity holders. With modest expectations set for the company’s 2024 fundamental performance, the current outlook appears favorable. Consequently, Santarelli maintains his Buy rating and raises the price target, underlining the potential for shareholder value appreciation.
In another report released on January 26, Barclays also maintained a Buy rating on the stock with a $67.00 price target.
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Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CZR in relation to earlier this year.
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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:
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- Caesars price target lowered to $55 from $63 at TD Cowen
- Caesars Entertainment Secures $2B Loan, Reports Q4 Preliminary Results
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