Caesars Entertainment Corporation CZR, the casino and resort operator that emerged from bankruptcy in 2017, makes for an attractive investment, according to Deutsche Bank.
The Analyst
Deutsche Bank's Carlo Santarelli initiated coverage of Caesars Entertainment with a Buy rating and $14 price target.
The Thesis
No legitimate reason exists to be "too picky" about Caesars Entertainment's stock, Santarelli said in the initiation note. (See his track record here.)
While near-term concerning trends on the Las Vegas Strip could provide investors with a better entry point, the longer-term bullish case for the stock can be made for six reasons, the analyst said:
- Expectations for high-single digit adjusted EBITDAR growth through 2020.
- A compelling and visible collection of owned assets that are easy to value.
- Exposure to regional gaming markets, which are showing momentum and are supported by consolidation activity ,which warrants a higher multiple valuation.
- Potential to utilize the balance sheet for strategic alternatives and action to support the stock.
- Better performance compared to Vegas peers.
- The company's pipeline of low-risk projects.
Price Action
Caesars Entertainment shares were trading up 1.77 percent at $10.08 at the time of publication Wednesday afternoon.
Related Links:
Bank Of America Appreciates Caesars Entertainment's 'Dramatically Restructured' Balance Sheet
Analyst Still Optimistic On Casino Stocks, Upgrades Boyd Gaming
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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