Caesars Targets Changed At Barclays

Loading...
Loading...
In a report published Thursday, Barclays analysts maintained an Underweight rating on
Caesars Entertainment CorpCZR
, while reducing the price target from $17 to $11, after the company reported its 1Q15 results. "CZR's deconsolidation of CEOC provides an opportunity to model and value the company based on CZR's remaining units (CERP and CGP) while bankruptcy proceedings for CEOC continue," the analysts said. Caesars has a 58 percent stake in Caesars Growth Partners (CGP), which the analysts estimate contributes $13 per share. Moreover, Caesars' ownership in Caesars Entertainment Resorts Properties (CERP) is estimated to contribute $2 per share. "However, we estimate CZR cash corporate expense ($80mn in 2016E) offsets value contributed by CERP, reducing equity value by $4," the analysts wrote. In the report Barclays noted, "Based on our new model and valuation, we value CZR shares at $11, with an upside case of $14 and a downside case of $0." The EPS estimates for 2015 and 2016 have been raised from -$3.53 to $52.98 and from -$0.44 to $7.03, respectively, taking into account the 1Q15 earnings release and the divestiture of CEOC.
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPrice TargetReiterationAnalyst RatingsBarclays
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...