Analyst Lance Vitanza of TD Cowen maintained a Buy rating on Caesars Entertainment (CZR – Research Report), with a price target of $53.00.
Lance Vitanza has given his Buy rating due to a combination of factors which include the strategic acquisition and the optimistic outlook on Las Vegas’s market fundamentals. Initially, Vitanza acknowledges the slow start to Caesars Entertainment’s year, due to weather conditions impacting January operations, but he maintains a positive view, particularly praising the acquisition of Wynn Interactive’s operations in Michigan. He believes that this acquisition will be beneficial to Caesars’ digital segment’s earnings before interest, taxes, depreciation, and amortization (EBITDA), due to the margin profile associated with the deal.
Moreover, Vitanza is bullish on the long-term fundamentals of the Las Vegas market, despite a lackluster forecast for the fiscal year 2024. He notes that the Las Vegas Strip plays a significant role in Nevada’s impressive gaming revenue, which has consistently surpassed $1 billion monthly for 34 straight months. The expectation of increased visitation from international guests and convention attendees, combined with a strong event calendar for Las Vegas, positions Caesars Entertainment to capitalize on these opportunities. He also points out that the company can optimize pricing strategies for high-end properties during major events like Formula One, which attracts a wealthier clientele, offering a favorable outlook for Caesars in the upcoming years.
In another report released today, JMP Securities also reiterated a Buy rating on the stock with a $65.00 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.
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