After shelling out $400 jillion to heighten its namesake venue inward blackamoor Hawk, Colo., Monarch Casino & Resort (NASDAQ:MCRI) is turn its attention backrest to the Atlantis Casino Resort Spa — the operator’s locale inward its place marketplace of Reno.
While thither obvious benefits to Monarch’s CO expenditures, including a fast-growing population and late lifted limits on tabularise games, there are potentiality perks to reasserting itself in Reno, too. The manipulator is tightlipped to completing refurbishments on the 27-floor Concierge Tower at Atlantis — a move aimed at attracting a more moneyed clientele. Investments in Reno could pay turned for Monarch because some analysts insure resiliency in the northern Battle Born State gaming hub.
We await MCRI’s Atlantis attribute proven to a greater extent resilient than contemplated through February, with initial Mar information suggesting an up regional gaming consumer post-Omicron,” said Stifel psychoanalyst Jeffrey Stantial in a recent note.
He rates Monarch shares a “buy” with a $96 cost target, upward from $91. Up 17.57% year-to-date, the caudex is easily unity of the best-performing domesticated gaming equities inwards 2022.
For Monarch, Reno Allure
While the Reno/Lake Tahoe/Sparks market place lacks the glitz and revenue heft of Las Vegas, the former relieve offers attractive points for operators.
Those include a growing universe and companies chess opening young offices in the region. Recent headlines intimate gaming companies are taking note. Circa Sports is gap a retail sports inwards Sparks inwards a few months and Century Casinos (NASDAQ:CNTY) said inwards Feb it’s acquiring Nugget Sparks to participate Nevada.
Monarch CEO John Lackland Farahi tells the Reno Gazette-Journal that Reno is an progressively “sophisticated” market place that warrants higher terminate offerings. Along those lines, the company is refurbishing Atlantis’ number 1 tower, which is to a greater extent than leash decades old.
Currently, Monarch owns just Atlantis and the aforementioned Centennial State locus — the latter of which is the to a greater extent profitable of the pair. However, the society is consistently mentioned as a potency player inwards regional gambling casino integration activity.
More Reno Catalysts
Reno is a market place with potential catalysts, including the takings of formula concern and to a greater extent gamblers in the sought after 55+ age demographic returning to casinos following the pandemic.
“In Reno-Sparks, we trust market-wide carrying out proven more resilient through Omicron than expected, with Feb GGR upwardly a considerable +35% vs. 2/2019. While Battle Born State has in time to written report Mar figures, we anticipate demand likely remained robust with the broader U.S. regional securities industry accelerating into March,” adds Stifel’s Stantial.
That complements strength inwards Colorado, where Stantial sees Monarch potentially first-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA) estimates past 8% and that’s with full-scale marketing efforts that are simply 2 months old.