UPDATE: Imperial Capital Downgrades Caesars Entertainment to In-Line on Potential Online Gaming Value
In a report published Tuesday, Imperial Capital analyst Gregg Klein downgraded the rating on Caesars Entertainment Corp. (NASDAQ: CZR) from Outperform to In-Line, but reiterated the $16.20 price target.
In the report, Klein noted, “We base our valuation on the potential value that online gaming could be worth at the CGP level. CZR will own roughly 57-77% of the equity in CGP with the balance being owned by individual shareholders of CZR who participate in the rights offering. The CZR shares have traded up significantly following the announcement of the creation of CGP to roughly consistent with our $16.20 price target. We think the shares are fully valued at this time. We think the CGP shares are an attractive means to invest in the potential of online gaming and expect the shares in the new entity to trade up over time.”
Caesars Entertainment Corp. closed on Monday at $15.79.
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