Market Overview

6 Reasons Why Deutsche Bank Is Bullish On Post-Bankruptcy Caesars Entertainment

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6 Reasons Why Deutsche Bank Is Bullish On Post-Bankruptcy Caesars Entertainment

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

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

Latest Ratings for CZR

DateFirmActionFromTo
Jun 2019DowngradesOverweightEqual-Weight
Jun 2019DowngradesBuyHold
Jun 2019DowngradesBuyNeutral

View More Analyst Ratings for CZR
View the Latest Analyst Ratings

Posted-In: Carlo Santarelli casino Deutsche Bank gamingAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

 

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StockFirmActionPT
GMLPReiterates10.0
JWNReiterates29.0
DSGXInitiates Coverage On43.0
ZMAssumes115.0
LOGMAssumes77.0
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