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Investing.com - Goldman Sachs initiated coverage on Caesars Entertainment (NASDAQ:CZR) with a Buy rating and a price target of $36.00 on Monday. The casino operator, currently trading at $29.71, has received a consensus Buy rating from analysts with price targets ranging from $28 to $62.
The investment bank cited a "solid 2026 setup in Las Vegas" as one of the key factors supporting its positive outlook on the casino operator’s stock.
Goldman Sachs also pointed to stabilizing competitive pressures in regional markets as another favorable condition for Caesars Entertainment’s business prospects.
The firm highlighted Caesars’ expected "significant FCF generation over the next 3 years" following the completion of the company’s multi-year capital expenditure cycle.
Goldman Sachs described the risk-reward profile for Caesars as "attractive" with "highly visible and modelable debt to equity value transfer over time."
In other recent news, Caesars Entertainment reported first-quarter earnings that fell short of Wall Street expectations, with a normalized EPS of -$0.48, which was below the consensus estimates. However, the company’s revenue slightly exceeded projections, reaching $2.79 billion compared to the expected $2.74 billion. CFRA downgraded Caesars’ stock from Buy to Hold, setting a new price target of $30, citing a challenging macroeconomic environment and concerns about the company’s balance sheet. Meanwhile, JPMorgan initiated coverage with an overweight rating, highlighting the potential for significant free cash flow generation through 2027. TD Cowen reiterated a Buy rating, emphasizing the company’s robust cash flow and digital potential, supported by its large database of over 55 million members. JMP Securities maintained a Market Outperform rating with a $45 target, noting Caesars’ strategic location on the Las Vegas center strip and strong premium segment activity. Analysts at JMP also pointed out the company’s positive outlook for convention and group business segments, which are expected to see growth in the medium term. Despite some challenges, Caesars’ digital segment showed significant growth, with an 18.8% rise in the first quarter.
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