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Investing.com - Stifel has reiterated its Buy rating on Caesars Entertainment (NASDAQ:CZR) stock, currently trading at $23, citing expectations for improved performance in upcoming quarters despite recent softness in Las Vegas. According to InvestingPro data, analyst price targets range from $27 to $61, suggesting significant upside potential despite the stock’s 47% decline over the past year.
According to Stifel analyst Steven Wieczynski, Caesars experienced softer-than-expected leisure trends throughout the summer on the Las Vegas Strip, which management attributed to a return to typical summer seasonality following post-COVID pent-up demand. Despite these challenges, the company maintains a substantial EBITDA of $3.59 billion over the last twelve months.
The company anticipates cash hotel revenues in Las Vegas to improve to flat-to-down slightly year-over-year in the fourth quarter of 2025, with the first quarter of 2026 expected to show stronger performance as group/convention business and the event calendar improve.
In its regional segment, Caesars reported stable but flat year-over-year performance, with reinvestment activity increasing in the second quarter even in markets without new supply growth. Management expects this reinvestment to moderate sequentially beginning in the third quarter.
Caesars reiterated its approximately $500 million annual EBITDA run-rate target for its Interactive business, though no specific timeline was provided, while noting that its online sportsbook was impacted by customer-friendly sport outcomes in September, consistent with broader industry trends. Investors should note that Caesars will report its next earnings on October 28. For comprehensive analysis and additional insights, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, Caesars Entertainment has seen several significant developments. Stifel raised its price target for Caesars Entertainment to $45, highlighting the company’s digital business, which is on track to surpass its $500 million target. However, Stifel also previously lowered the price target to $43 due to seasonal factors in Las Vegas, maintaining a Buy rating on both occasions. Meanwhile, Citizens has reiterated its Market Outperform rating with a $41 price target, mentioning potential leverage over VICI Properties concerning regional casino leases. JMP Securities also adjusted its price target to $41, citing increased marketing and promotional spending in Caesars’ regional portfolio. JPMorgan continues to hold an Overweight rating with a $44 price target, despite noting that the stock has hit a five-year low. These recent analyst assessments reflect a mix of optimism and caution regarding Caesars Entertainment’s financial outlook.
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