Caesars Stock Draws Mixed Reviews from Analysts

Caesars Entertainment (NASDAQ: CZR) stock lagged the broader securities industry in 2023, and is scuffling to start up 2024, as highlighted past a 3.58% correct since the start of the year. While the make isn’t controversial, thither is sectionalization among analysts covering the cassino equity.

Recent sell-side commentary on the Horseshoe manipulator confirms split up views on the stock. For example, Caesars was unity of foursome gaming equities that saw terms targets cut past John Pierpont Morgan Henry M. Stanley on Tuesday. The search unshakable pared its toll calculate on the Flamingo operator to $45 from $48, which implies small downside relation to Wednesday’s faithful at $45.36.

Conversely, Thomas Hunt Morgan Sir Henry Morton Stanley is to a greater extent constructive on MGM Resorts International (NYSE: MGM), Caesars’ biggest contender on the Las Vegas Strip. The bank expects that caudex to brand gains this year, and it could be the preferred avenue for Sin City exposure over Caesars.

Of the 16 analysts cover Caesars, 12 charge per unit it the combining weight of a “strong buy” or “buy,” spell 4 charge per unit it “hold.” The consensus damage target of $61.94 implies potentiality upside of 36.55% from stream levels. But that also implies way for downward revisions.

F1’s Benefits Limited for Caesars Stock

The Las Vegas Grand Prix, which took shoes finally November, was a boon for select Strip cassino resorts, including Caesars Palace.

However, JPMorgan analyst Chief Joseph Greff noted inward a recent report to clients that most of the event’s benefits were accrued to higher-end Strip properties, such as those operated past MGM and Wynn Resorts (NASDAQ: WYNN). On the other hand, mid-tier venues, which include most Caesars’ Strip properties, didn’t gain substantial perks from the Formula One (F1) race.

Greff lowered his damage forecast on Caesars stockpile to $54 from $55, citing other factors beyond the Strip. The psychoanalyst said twist at Harrah’s New Orleans, which is beingness converted to a Caesars Palace, created some disruptions inwards the second half of last-place year.

That’s a temporary come forth which testament before long live resolved. Perhaps of to a greater extent interest to investors is Caesars’ lethargy in Atlantic City, N.J. On the Boardwalk, Caesars’ threesome venues hold been unable to setting a serious threat to the area’s triplet of leaders, MGM’s Borgata, Hard John Rock Atlantic City, and Ocean Casino Resort.

Some Bullish Commentary

The totality of the sell-side isn’t bearish or neutral on shares of Caesars. Count JMP Securities analyst Jordan Bender among those bullish on the shares. In a recent note, Bender highlighted Caesars’ strong management team, which has a knack for stabbing costs and generating long-term unloose cash flow.

More impressive, keeping a lid on nimiety costs has made legacy Eldorado/Caesars one of the most successful perimeter expanding upon stories over this time, highlighting its singular take on invested capital/synergy rail record,” observed Bender.

He has a $65 price direct on Caesars and believes the operator tin can generate free people immediate payment flow rate of $1.6 billion, or $7.50 a share, at some dot next year.

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