27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Caesars Entertainment Corporation (NASDAQ:CZR), the casino and resort operator that emerged from bankruptcy in 2017, makes for an attractive investment, according to Deutsche Bank.
The Analyst
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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
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.