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On Wednesday, Citizens JMP reiterated its Market Outperform rating and $45.00 price target for Caesars Entertainment (NASDAQ:CZR) stock, representing a 61% upside from the current price of $27.99. The firm’s analyst highlighted the company’s first-quarter performance, which exceeded expectations despite the low sentiment and uncertainty surrounding the macroeconomic environment leading up to the earnings release. According to InvestingPro data, analyst targets range from $23 to $62, with the consensus remaining bullish.
The analyst’s perspective on the industry has grown more optimistic based on real-time data, including stable figures for April. The assessment supports Caesars’ current valuation, with its shares trading at a multiple of 6.9 times Citizens JMP’s estimated 2026 EBITDA. This is seen as a considerable discount compared to the company’s historical average. InvestingPro analysis reveals the company generated $3.6 billion in EBITDA over the last twelve months, though it operates with a significant debt burden, as highlighted in one of the platform’s key ProTips. Discover 8 more exclusive ProTips and comprehensive financial metrics with InvestingPro.
The analysis acknowledges the inherent risks associated with Caesars’ significant reliance on its Las Vegas operations, which are expected to account for 51% of its 2024 EBITDAR. Despite these concerns, Citizens JMP views Caesars as the preferred investment to capitalize on the Las Vegas Strip’s potential and continues to find the stock attractive at current levels.
The maintained price target of $45.00 is derived from a valuation of 7.5 times the estimated 2026 EBITDA and 8.8 times the projected 2026 free cash flow, slightly increased from the previous multiple of 8.5 times. This valuation reflects a confidence in the company’s financial prospects and its position within the gaming and entertainment industry.
In other recent news, Caesars Entertainment reported mixed financial results for the first quarter of 2025. The company posted an earnings per share (EPS) of -$0.54, which was below the forecasted -$0.17, and revenues of $2.79 billion, missing the anticipated $2.82 billion. Despite these misses, Caesars saw a 2% year-over-year increase in consolidated net revenues, reaching $2.8 billion. The digital segment was a bright spot, with net revenue surging 19% year-over-year, contributing to an adjusted EBITDA increase of $38 million. Analysts have noted the company’s promising outlook for its Las Vegas operations and digital growth. Additionally, Caesars is focusing on debt reduction and share repurchases to strengthen its financial position. The company also anticipates 2025 to be a record year for group business. Despite the earnings shortfall, the market reacted positively, reflecting investor confidence in the company’s strategic direction.
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