Shares of Golden Entertainment (NASDAQ: GDEN) are away 15.15% year-to-date and the stock labors 25% beneath its 52-week high, but some analysts remain bullish on the name.
That mathematical group includes Truist Securities psychoanalyst Barry Jonas, who inwards a recent report to clients, initiated coverage of the Strat manipulator with a “buy” rating and a $45 price target. That implies upside of almost 32% from the March 15 close. Jonas believes Golden is underappreciated and undervalued.
(Current valuation) doesn’t shine up fundamentals, a substantial simplification in leverage, or a real landed estate ownership backstop,” he wrote.
In anointment Golden Entertainment the “Silver State Warriors,” Jonas added that the gambling casino operator has one of the best equilibrate sheets in the industry and that returning upper-case letter to shareholders could follow an increasing precedence for the gaming company.
Golden Entertainment Now a NV Pure Play
Following its $260 trillion sale of the Rocky Gap Casino Resort in Flintstone, Md., and the divesture of its one-armed bandit route unit endure year, Golden is now a virtuous play on Silver State with nearly 70 PT’s Pubs and casinos inward Las Vegas, Laughlin, and Pahrump.
In increase to the Strat, Golden’s other Sin City casinos are AZ Charlie’s Boulder, and genus Arizona Charlie’s Decatur. Coupled with PT’s Pubs, that’s sufficiency to tether Golden to the rising prominence of the Las Vegas locals demographic, which is boosted inwards large division past the Valley’s soaring population.
In Pahrump, which is located near 58 miles from the Las Vegas Strip, Golden owns and operates the Gold Town Casino, Lakeside Hotel & Casino, and Pahrump Nugget Hotel & Casino. Golden operates the Water Bearer and Edgewater gaming venues inwards Laughlin. That puts it inward rivalry with Caesars Entertainment (NASDAQ: CZR) as the dominant casino make inwards that city.
Golden could also be mulling options for the CO Belle in that city, which has been shuttered since 2020 due to the coronavirus pandemic.
Golden Entertainment’s Real Estate Story Not Fully Appreciated
Truist’s Jonas argued that investors ascribe some credit entry for Golden’s Las Vegas existent estate holdings, adding that the stock’s stream multiples involve a shareholder is getting the company’s Sin City casino trading operations for free. However, thither isn’t a great deal adulation for the entirety of the operator’s prop holdings.
“Additionally, we consider GDEN’s tangible estate could follow worth as a great deal as the entireness of its stream equity value, with the OpCo essentially free,” observed Jonas.
Wall Street has long praised gaming companies with extensive or replete(p) verify of their tangible estate, and it’s not a stretchiness to usurp Golden’s Battle Born State tangible land is worth close-fitting to or to a greater extent than its securities industry capitalisation of $977.05 million.
Jonas also sees Golden as a cap issue story, a thesis that was cemented earliest this month when the companionship initiated a quarterly dividend. The genus Arizona Charlie’s manipulator has also been a devoted emptor of its have shares and is actively reducing debt.
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