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Investing.com - JMP Securities has lowered its price target on Caesars Entertainment (NASDAQ:CZR) to $43.00 from $45.00 while maintaining a Market Outperform rating on the stock. The casino operator, currently trading at $28.47, has seen its shares decline nearly 23% over the past year, according to InvestingPro data.
The price target reduction follows what JMP characterized as a quarterly miss, though the firm believes the foundation for free cash flow remains intact despite the disappointing results.
JMP noted that Caesars shares currently trade at 6.7x the firm’s 2026 estimated EBITDA, compared to a historical average of 12.1x, suggesting potential value at current levels.
The firm acknowledged that Caesars’ Las Vegas exposure, which represents 51% of expected 2024 EBITDAR, presents risk in the current economic environment.
JMP’s revised price target is based on 7.4x its 2027 estimated EBITDA (previously 7.7x 2026 estimated EBITDA) and 8.0x its 2027 estimated free cash flow (down from 8.6x 2026 estimated free cash flow).
In other recent news, Caesars Entertainment Corporation announced its second-quarter earnings for 2025, revealing a notable discrepancy in earnings per share (EPS) but a slight overperformance in revenue. The company reported an EPS of -$0.39, significantly missing the anticipated $0.06, resulting in a surprise of -750%. On the revenue front, Caesars exceeded expectations by reporting $2.91 billion, compared to the forecasted $2.86 billion. These results highlight a mixed performance for the quarter, with the revenue beat providing some positive news amidst the EPS shortfall. The earnings announcement has attracted attention from investors and analysts, who are closely monitoring the company’s financial health. Analyst firms have yet to provide updates on their ratings following these results. These developments are part of ongoing assessments of Caesars’ financial strategies and market position. Investors remain interested in how the company plans to address these earnings challenges moving forward.
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