Caesars stock rating reiterated at Buy by TD Cowen on digital strength

Investing.com - TD Cowen has reiterated its Buy rating and $40.00 price target on Caesars Entertainment (NASDAQ:CZR) following the company’s mixed second-quarter results. According to InvestingPro data, analysts’ targets range from $28 to $62, with the stock currently trading at $27.83, suggesting significant upside potential.

The casino operator showed strength in its digital segment, which generated record quarterly EBITDA and key performance indicators according to TD Cowen’s analysis.

Regional operations beat revenue expectations, though margins remained under pressure from properties still ramping up after renovations.

Las Vegas operations showed softness, particularly in non-gaming trends that lagged during the quarter.

TD Cowen expressed continued bullishness on Caesars’ Times Square bid and long-term free cash flow potential, citing strong momentum in the digital segment and expected recovery in regional operations. While currently operating with significant debt, InvestingPro analysis shows net income is expected to grow this year, with analysts predicting a return to profitability. Get access to 7 more exclusive ProTips and comprehensive analysis in the Pro Research Report.

In other recent news, Caesars Entertainment reported its second-quarter earnings for 2025, showing a significant miss in earnings per share (EPS) but a slight beat in revenue. The company posted an EPS of -$0.39, which was well below the forecasted $0.06, representing a surprise of -750%. However, Caesars managed to exceed revenue expectations, reporting $2.91 billion compared to the anticipated $2.86 billion. Following these results, Macquarie maintained its Outperform rating on Caesars while lowering its stock price target to $40.00 from $45.00, citing weakness in Las Vegas operations and one-time headwinds in the Regional segment. Similarly, JMP Securities reduced its price target for Caesars to $43.00 from $45.00, maintaining a Market Outperform rating. JMP noted the quarterly earnings miss but expressed confidence that the foundation for free cash flow remains strong. These developments highlight recent challenges and adjustments in analyst expectations for Caesars Entertainment.

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